I came across an interesting article tonight by Gary Smith called "Quit Waiting for the Big Blowoff" that is extremely relevant to today's market, though it was written during the last bear market in 2001.

In the article, Smith asserts the market bottoms are rarely formed by large blowoff, or capitulation days.  Though these bloody days may form short-term bottoms, they're rarely permanent  True bottoms are generally accompanied with little fanfare or excitement.  As the author puts it, "most bottoms are formed due to one thing:  Sellers simply go away."

Smith supports his argument with history by including a study of capitulation days in 1929, 1973, and 1987 that were followed by a lower bottom or at least a sideways market in the following months.

The lesson here is summed up nicely by Smith:  "Buy when the folks are sleeping - not when they're bleeding."

So check out the original article for an interesting read.