In the short run we are overbought and will remain so through Wednesday. The overbought reading will likely put a lid on the upside in the early portion of this week.
Unfortunately, I did not heed my indicators as I did not expect a decline of this magnitude. Rather than go on another rant about the ECB I will focus this post on what my indicators are saying now.
The good news is that we are no longer overbought. Unfortunately, we are not yet at a good oversold reading either. The reason being that we had a lot of chopiness in recent weeks. In the very short term we should see a bounce as is usually the case after three hard down days. But both sentiment and the overbought/oversold indicators are not calling for much more. Once we get a bounce we will likely be back in no man's land in terms of short term indicators.