We are starting to see the ingredients necessary for a bounce as complacency has left the building. The missing ingredient for a larger rally is that the market will not be maximum oversold until the end of next week. I expect a bounce sometime before that but it will likely be rejected pretty quickly.
I am still maintaining a market neutral portfolio but I did sell puts against my hedge, so I will not be hedged if the S&P 500 goes below 1040 by February expiration. I might take stabs early next week and play for a bounce but will wait until late next week before making a stand on the long side. If we do get a bounce shortly, I will look to put some of my short exposure back on.