More Constructive

We finally saw some signs yesterday of investors throwing in the towel:

• The ISE equity showed the most put buying since early June.


• The VIX popped


• The TRIN reading was extreme


• We broke below widely watched support levels that likely cleared out some weak hands.

All this should lead to some sort of a bounce, which we are seeing this morning. Its possible that this bounce will be the beginning of a bottom but the intermediate term sentiment and oversold  indicators are not extreme enough to have  a strong conviction that this was  a bottom.