There's a reason why investors are bearish...
"over 80% of the companies issued negative guidance for future earnings."
The Wilshire Count. Each retracement is a nested fractal overlapping the prior rally...
Sentiment follows the market. Here is bearish sentiment inverted, to show that it tracks the trend of the market - up, and down...
As we see, in the last cycle bearish sentiment (red line, inverted) reached its low point in 2007, and then remained at the current extreme bearish levels for over a YEAR. The vertical blue line shows when monthly momentum was at current (negative) levels...
Momentum is back to overbought levels...
A 62% retracement so far, taking back 1880 on nominal volume
With JPY aka. "Overnight risk"
With oil:
The Nasdaq is the weakest link now
The sharpest 2-day rally since August, and before that October 2014