With the market action that we have seen in the past few days, there has been a lot of talk about the markets being oversold. Well, that's not so, at least according to the McClellan Oscillator. And that's especially true in case of the NASDAQ as can be seen in the charts below. While the markets are close to oversold levels, they are not quite there yet.
Another one or two down days, and THEN the odds will start favoring the bulls. If you are long, what you dont want to see is consolidation at or close to oversold levels (compared to a decent move up). That would just give the bears a chance to regroup and hit back again.
Take care and good luck!