Hey Oceaneering
I've been through a retrenchment before and I know how terrible and soul crushing it can be. What you're feeling is normal and justified. I would go through cycles of sending out job applications, hearing nothing back and then having a complete nervous breakdown. The breakdown can be necessary to process all the frustration but the key is to get up afterwards and keep trying.
That being said I never took any down time. Treat your job search like a job. Wake up, get dressed and search a minimum of 8 hours a day and then whatever else you can throw at that day. Every week I would take some time to look at what I had sent out, try to improve the format, content, ensure that my most important work experience was highlighted or alternatively highlight the experience that was most relevant to the job I was applying for. From my experience it can take anywhere between 1 to 3 months for companies to process new hire applications.
I took a look at my finances to determine how long I could afford to look for work, what financial assistance I could use to prolong my search, what expenses were not critical or could be downgraded without 1) effecting your job search and 2) place yourself in a worse financial situation after finding a job . Lastly if you cannot find work in your skillset, add applications to work related to your skillset or look for non-skilled work that will keep you secure enough to continue the search. Having a list of worse case jobs can both make you feel safer in knowing there are alternatives but also motivate you to not have to resort to them.
Be strong and take it one day at a time. As a last note make short term goals, they will keep you motivated and give you purpose. Today I will send out two CV's and identify a new possible employer. Make your goals reasonable and don't beat yourself up for not reaching them instead focus on making progress. Also if you get angry, get angry at yourself, I was a real bastard to myself and honestly I needed to give myself a few kick in the ass in order to keep going.