Educational use only. Never intended as advice.

Have a method. Stick to it with nauseating consistency as long as it works. And hardest of all, be patient.
SP500 - strong price action with good end-of-week 'holding pattern'...very close to forming a Dave Landry 'Bow Tie' pattern, from which pullbacks may provide good entry (for pullback traders).
NEM (Newmont Mining) the grand-daddy of gold stocks. Support at the 150 day average and stochastics turning up. I'd rather not be short NEM here. (long selected mining stocks)
(TNX) Ten-year bond yield (weekly chart)...overbought...so inflation is dead? Note that yield is approaching resistance.


Dynamics:
VXO 12.51 with ten period average of 13.68 (less than 10% extended)
TRIN
Stochastics oversold: SPX 5%, NDX 5%
Above 10 day average: SPX 74%, NDX 80%
Worden T2108 (over 40 day average) 44%
Miller's Loser trend (adequate price and volume, below 200 day average): 765 (ten days ago 997) bullish
"Pure price action" - (subjective) positive

Most oversold ETFs: (proprietary)
GLD 46.07-45.32 (long selected mining stocks)
TLT 88.64-87.86 (long TLT)
IEF 82.50-82.15

Selected OEX oversold
MWD 52.54-51.90
VZ 31.10-30.53

Selected ETF NR7 (volatility expansion possibility)
UTH 112.20-111.16
SMH 35.38-34.89

Selected OEX NR7
DELL 29.82-29.60
CMCSA 27.48-27
IBM 83.30-82.65
CAT 53.94-53.4
MSFT 26.71-26.45

Summary:

Yes, the market is overbought, and which will prove stronger, the beginning of the week momentum players or mean reversion. The bull's have definitely had the ball recently.

What counts? Being in sync not with our beliefs but with the market. The oversold ETFs and OEX stocks provide some lower risk entry should they 'work' and the NR7 (volatility space) offer blastoff potential in either direction.

Later tonight I'll work on the volatility bands for shorter-term activity.

Good trading and great risk management.

Ron