Check out these readings on the Mcclellan index is now starting to exhibit readings rarely seen at this extreme. Something to be aware BUT not a reason to go and buy everything in sight. Remember, this is only something to be aware of. It's NOT a BUY SIGNAL in my opinion. Sure we could see a bounce soon to relieve some of these oversold readings but the real story is happening in the VIX chart in my opinion.
As far as i am concerned i still do NOT see any climax or capitulation selling which is often seen near major market bottoms. Please look at the VIX chart attached very closely. Take a few minutes and study it.
What do you see? Based on that chart of the VIX, do you believe the SELLING is done yet? Do you see panic selling? NOT ME.
Conclusion: we are going LOWER. How far lower?? Not sure at this point. My only advise is DO NOT be a hero. Let the market tell you where the bottom is.
Good luck out there.