What a week we have had - for the bears it was one for the books - as for me, one of the best couple of weeks of trading that I have ever had. The T2108 shows exactly how oversold we are, and to be initiating new short positions at these levels is boarderline insane, in my opinion. If you are looking to add new short positions to your portfolio, you are better off waiting for this market to work off some of these oversold conditions first so that you can initiate new short positions at much more favorable levels.

The second chart is that of the NYSI Advance/Decline with a Stochastics overlay included. This is one of my favorite indicators for determining market reversals, and while it is at the bottom, it hasn't reversed yet, but could see it do so as early as next week.

Click Here to See the NYSI Reversal Indicator.

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