With the levels of volatility expected in the ensuing days, the model will take its profits here and move to cash.
The debt ceiling was raised so even though the Fed made no formal announcement of the start of QE3, expect it to come.
In addition, signs of selling exhaustion among leaders is rampant, and CSCO announced after yesterday's close a very strong earnings report.
So while it is true that oversold can become more oversold, the above conditions push the model back into a cash position.
Members may elect to sell their ETF positions outright, or scale out of them as they hit their sell stops. As of this writing, NASDAQ futures are trading +0.59% from yesterday's close.
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