Looking at some of the general market indicators, it seems the market is quickly approaching oversold territory. Let's start with the McClellan Oscillator. Below are the charts of NYSE and NASDAQ McClellan Oscillators with the oversold levels marked on the charts. Both the indicators are at their lowest levels since the middle of August.
Moving on to another breadth indicator, the number of advanced-declining issues.
From the charts above, these indicators have already reached levels from one could expect a bounce.
Of course, all the above does not mean that the market can not and will not move more down from here, but it does make one question whether its worth the reward to take the risk of opening new short positions here.
I will be back later with a watchlist for next week and also more thoughts about the general market.
Make it a great weekend!