We are oversold for now

The markets are oversold on the hourly and $DOW on the daily as well as of today.

So far I have counted 2 waves down from the top, with the last one ending around 1,650 on $SPX.

We had a very short consolidation period (last Friday for a few hours), and then proceeded lower despite the oversold hourly sentiment - this is bearish and I interpret it as fear sinking in (beyond just technical-driven selling).

Interestingly, our indicators continue to point down and on the hourly we had the start of a new wave down. If in fact a 3rd wave down begun already, then our next target down is around 1,625 or bit lower on $SPX, at which the market will be oversold.

Ultimate target for this down turn is around 1,550 on the $SPX, which happens also to be close to the 200 MA.

But before we get this low, we should have a bounce up of some sort around the 1,625 level.

The fact that we have been dropping from the top without any significant pull-up so far, is an ominous sign (bear market ahead?).