S&P 500 Index (SPX) — The past week’s sell-off has penetrated the support at S&P 752 established in November. With the Dow, S&P 500, and NYSE Composite making new lows, the bear market has been confirmed.

But the indices and most sectors are now so oversold that a reflex bounce is highly likely.

For traders this is not the time to take positions on either side of the market. And long-term investors should refrain from adding new positions to portfolios.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.