With the market falling hard in the last two trading sessions, it's time to turn to our trusty ol' McClellan Oscillator to check if the market has reached oversold levels just yet. While there is no single oscillator out there that can correctly time the markets, the regular readers of the blog know that we have had good results with McClellan Oscillator in the past. Below are the charts for the NYSE and NASDAQ McClellan Oscillator.
According the the above charts, the markets haven't reached oversold levels just yet but might get there with another day of heavy selling. In my opinion, the time is not yet ripe to go hunting for long positions, specially with the markets finishing below MA(200) on Friday. It might be best to just sit back, relax and let the markets decide its course instead of trying to be a hero.
Take care and good luck!