Few days of selling and panic has set up this market for a bounce in a near term time frame. Such bounce will be a oversold reflex bounce. Such bounce are only for short term nimble traders and does not indicate it is safe to jump right back in for long term traders. For nimble traders this will be a playable bounce of few days with good profit potential.
For the first time in this correction we are witnessing good selling and some washouts. The stocks down 25% plus in 65 days has quickly climbed to 1183 after making an attempt to stabilize at 800 area. The stocks up 100% plus is also witnessing deterioration. All these things are good as this can drive the market down to levels from where a multi month rally can develop.