Oversold with Warning

Since last Wednesday the market has sold off each day sending the market through support levels and killing bulls in its path.  Today the market dropped almost 2% closing below 120.00 and below 1200 on the S&P.  But the bulls may get some relief soon.  The Piker Indicator has flashed a deep oversold sign posting a 17.66 a normal oversold is below 28. The white candle represents the oversold condition But since we are in a downtrend recognized  by the 70 ema cross the 230, oversold can be much lower.  Last time SPY was under these condition was 2008, below is a screen shot of SPY when the Piker Indicator was under 18. In late 2008 SPY continued to dip as did the Piker Indicator so this level isn't a sure bouncing spot.