With yesterday's market action, the market now finds itself in oversold territory according to the McClellan Oscillator. This does not mean that the market HAS to bounce here, just that the odds favor a bounce now.
But here are a couple of questions before you get too excited about the bounce -
(a) Seeing the momentum of the current down move and the break of key levels, do you think traders will be looking to buy into a rally or sell into it?
(b) If people are looking to sell into the rally or get out of their existing longs, will the rally last for long or even happen?
Take care and good luck!