Gap up, and then down all day

The above chart of the QQQQ shows a nasty looking wide range, outside bar to the downside. The market gapped up on the open and just couldn’t hold onto the gains. Late in the day all the indexes accelerated to the downside. I had expected a bit of upside and then a re-test of the lows, but didn’t think it would all occur on the same day. The low of last Friday did not hold. Maybe the Qs are playing catchup to the downside.
The S&Ps also lost earlier gains. So far the lows of last Friday are holding. The SPY still had an outside day down, although the close wasn’t as much of a washout as in the Qs. Both markets are oversold and a bounce should still be expected, but it will take time to repair the damage before any meaningful upside should be expect to be sustained. I would prefer waiting for a bounce to enter shorts rather than enter with such oversold readings on all my indicators. Market can get more oversold, but bounces are safer places to enter.
Gold has had a nice retracement into the halfway zone of the recent advance. So far it appears to be in a broad, sideways trading range. If this retracement holds, the regression bands could start to turn up, and a trend may emerge. So far I’m standing aside as direction is not clear.

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