Some quick excerpts from the full post below, The Market Was Flashing Red Lights, Now It's Oversold ...
"The one thing I see for sure in breadth and the S&P/Morningstar performance is this market is now, very oversold on a breadth basis, so I think out position taken up today was the right thing to do and we did it based on the signals which just happen to fit the breadth oversold condition.
The 3C intraday charts thus far have shown positive divergences in to weakness and there's a larger reversal process/short term base I suspect in the making so I still think we'll get a pretty decent bounce"
Early Indications Monday August 4th, 10:55 a.m.
As I said earlier, "Don't Chase", however this bounce is now looking very strong for lift-of, something we haven't seen all week so at the same time, I don't want to miss it."