The Market Trend Model (http://bitly.com/M_Trend_Model) shows a solid negative bias as fear and uncertainty have gripped market participants. The resilience shown by large cap technology stocks in recent weeks has fallen victim to a vicious mauling by the bears.
The monthly time frames of the major indices are in danger of violating long established uptrends and the weekly time frames suggest further downside is possible. Currently, the daily time frames remain in very oversold conditions and indicate a bounce is likely.
The market remains in flux and prudence dictates a "wait and see" attitude before committing capital to stocks.