The following screenprint does not tell the whole story of markets stuck in panic mood. At the height of selling frenzy at noon on Jan 15, I saw DJIA went down 530 points. It ONLY went down 390 points at the close. A reversal is afoot.
All i want to say is we may have seen signs of a downside wash-out on Friday. Consider, for example, this 10-year chart of AAII bears-bulls (black line) and Rydex bear to bull fund flows (green line). Past spikes in either indicator to the current elevated levels have marked bottoms in the past.
As well, the CBOE equity only put/call ratio also spike to levels on Friday indicating panic selling. This is another sign of capitulation.