We are now nearly 60 points lower on the S&P 500 in four trading days. We have seen extreme breadth readings and extreme put buying. The Hulbert HSNSI short term market timers are now recommending a net short position in the Nasdaq. In the past this has been an excellent contrary indicator.
Anecdotally, it seems everybody out there is bearish and the numbers are starting to back that notion up. All this strongly argues for some sort of relief rally that should last one to three days.