The market remains in a downtrend, but Dan doesn’t want to short here from a trading stand point. He sees to much bearish sentiment in the market at this time. The market held a key technical level of 1040 in the S&P 500, so there is potential for a relief rally to work off the oversold conditions. The VIX didn’t pop like he would expect on the recent down move, which is another hint that market participants are leaning short.

Dan on Bloomberg