After a drop of the magnitude that occurred on Monday, the likelihood of some sort of relief bounce is quite high. When the market crashed in October 1987, there was a huge bounce the next day, although this is a very different situation now and conditions for aggressive buying are just not in place.
I've been writing this quite a bit lately, but it is really the only thing that matters: there is still far too much uncertainty about the extent and severity of the coronavirus and its ultimate economic damage. The market cannot produce much of a bounce until it has some better clues as to those issues.
While some aggressive market players are hoping that the oversold conditions combined with news of significant fiscal and monetary stimulus will bring in buyers, trust levels are extremely low after the negative reaction to aggressive action by the Fed.
Another problem is that there continues to be great concern about the functioning of credit markets. Equities are being held hostage by what is going on there to a great degree.
I'm trying to day trade the indices a bit and am resisting the urge to buy stocks that are already down substantially. It is very enticing to buy names that have already been more than cut in half from highs. Still, that doesn't mean that the timing is favorable.
The day will come to aggressively buy stocks that have collapsed, but I don't think it is today.