Equity Markets Very Compressed — Imminent Short Term Relief Rally Expected

The markets are very compressed now, and the number of down days in a row quite impressive. The ES is trading at 1297.50 as I'm writing this post, that's about 110 points down in a matter of a month.

For the decline to be able to resume in a sustainable manner, a short term bounce from here should be expected as early as this Friday's session in order to clear some of the fear (there isn't much yet, as the VIX is still at about 25) and oversold situation of the markets.

I'm contemplating the idea of going long the ES for a few days, with a very tight stop.