I like to look at this chart - Percent of S&P 500 stocks below the 50 day moving average - for a feeling of how oversold things are....and it's quite nasty.  The reading is actually worse than the low of March 2009 and at lows of fall 2008.  Generally once you are below 30% you have a quite oversold condition... 20% even more so, but when you get these 5-10% readings it is usually quite rare.

While we have new home sales this week (existing home sales last week was a more important reading) and a second revision to GDP Friday, all eyes will be on Europe and the Jackson Hole, Wy speech. 

With this morning's premarket gap up, S&P 1120 is holding as support for now, as noted last week.