Today was day 5 of the decline. Unfortunately, we do not get a good oversold reading until a decline is about 10 trading days old. A good oversold reading generally leads to a longer lasting rally.
It is fairly uncommon not to see some sort of relief rally during that 10 day period when the market becomes oversold. Generally, there is a multi day move lower, followed by a brief relief rally, followed by a second multi day move lower.
Thus far we have not seen the relief rally I have been looking for. The main culprit appears to be the liquidations in Chinese companies, financials and select momentum names. I remain of the belief that we should see some sort of a relief rally or at least chop sideways for a couple of more days. Have a good night.