bonzaboy,That may indeed be true in the long run, however I...

bonzaboy,

That may indeed be true in the long run, however I would argue that just as the markets overshot to the upside, the markets have now overshot to the downside for what we actually know now and are extremely oversold.

Sure, if we (say) rally to 5000 and fail to maintain an uptrend from that point we're likely to retest the lows and possibly break well below. However, for the markets to collapse in a heap at this point would imply the Dow falling quickly to 4000 and XAO to perhaps 2000. The market is so heavily oversold IMO this is not going to happen until we retest the upside first.