The model is always measuring buying vs. selling pressure. As reported earlier, it has sensed selling exhaustion. Normally, the model stays on a sell signal, but the selling exhaustion has been more pronounced than even what it saw in 2008 (and certainly more pronounced than in 2010's flash crash). So yes, there are slight odds the market could continue to fall, but the odds are greater it will bounce. That said, the market may very well retest and undercut lows as it did post-flash crash in 2010, but that type of volatility carries huge risk so it is sometimes best to stay in cash, and wait for the next window of opportunity.
NASDAQ futures are trading -0.47% premarket as of this writing. As one possible trading strategy, one could sell their inverse ETF(s) (or cover their normal ETF shorts) once the NASDAQ Composite crosses above yesterday's close of 2381.05. That way, should the market continue lower over the ensuing days, one could use trailing stops as their inverse ETF(s) rise further, to capture further gains.
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