I noted yesterday that the markets were so oversold that I thought they might bounce. At Monday’s close, 59% of the Nasdaq 100 stocks were oversold. By Tuesday’s close this percentage fell to 39%. Now that the rebound has begun, the question is how far it will go. No one knows. During the most recent market bounce, the percentage of oversold stocks fell to zero. I will watch closely to see whether this market tops out soon or develops into a sustained major up-trend.