Stocks are still overvalued,

The market is selling off because the fundamentals are weak and the stocks are overvalued.

Even in an overvalued market, you'll still be able to find good stocks to buy. The market still looks okay.

[Sears' second pick is Ericsson for a value play.] The stock is incredibly oversold in our opinion. The new managements is going to do a pretty good job we think and when telecom comes back that's where you want to be, ... Ericsson is certainly at least a one-year hold-though. Were not expecting any miracle soon.

I'm looking for bearish sentiment to warrant a brief rally,

The run's still intact. Any pullback is temporary, ... Even if we lose a couple of hundred points, you're going to see people jump in and push it back up. There are plenty of people in cash.