I am trying to get my bearings as I have been out for the past week and a half. My wife and I had a beautiful, healthy baby girl. When I last left I was looking for an oversold rally, which we saw last week. The rally lasted most of last week until right after the employment report. Since then we have been down for almost three trading days.
In the very short term we could see a bounce after a nasty day like yesterday but this is likely not the bottom. The decline is only three days old and a nasty day like yesterday that comes early in a decline usually sees some follow through. The intermediate term sentiment indicators are still showing excess optimism although they are no longer extreme. Ideally, I would like to see the market become more oversold and intermediate term sentiment turn more neutral or even negative.
My initial reaction is to do some buying on weakness but to leave plenty of room as a better opportunity is likely in the coming weeks.