After yesterday failed attempt run on light volume, today we had a new red day on strong volume confirming that the less resistance path is Down. $QQQ $SPY
Another clue are the bonds index $TLT showing a new uptrend, and forming a cup with handle base with pivot point at 108.8. These shows the money that is "flying to quality".
Yesterday was just a technical bounce to work off the oversold area. Remember that the market will try to fool you all the time to take your money. That is why volume is so important, to keep a heads up on the supply/demand of the general market.
Never try to beat the market unless you want to be slaped in the face. The market is driven by the big corporporations, mutual funds, etc and they will try to create a fake bounce/trap to make you think that the correction is over and then pull the rug from below you. That is why indexes never go straight down as never goes straight up.
In this environment don't be greedy trying to buy anything, you don't need to trade every day. Always when in doubt, stay out. Cash is the king. Preserve your capital to live another day.
I've learned all these tips the hard way, loosing money and making a lot of mistakes. I want to prevent you, the small investor like me, to live another day and in the long term get profits out of the market.
Why I do this? Because I love doing it, I want that the small investor keeps choosing the market to invest his savings instead of banks and big corps access only club. And I force myself to study to write these posts and stay updated, so is a learning tool for me too, so I thank you for that.