Early buyers are very tentative, which is understandable in view of recent market action.
What has plagued the market recently is the aggressive selling of strength. Monday afternoon we had a good example as the indices bounced back following a soft open and then were slammed lower all afternoon. Last week the market had selling every afternoon.
So it's understandable the buyers are waiting for some proof that there is support. They want someone else to exhibit some confidence in the market before they risk their precious capital in some bottom-fishing plays. It has been very dangerous lately trying to catch a turn with most buyers being burned when they have tried to trade a bounce.
Ironically the high level of skepticism makes it more likely that a decent snapback may finally develop. What drives a strong bounce is the feeling of being left behind and that develops the longer the indices stay in positive territory.
If the early bounce holds and the opening lows are not breached for a change that will start to create the feeling that maybe a turn will develop. Since none of the bounces have held lately there isn't anyone worried about being left behind.
One major complication is the Fed's FOMC interest rate announcement Wednesday. This is one of the most important Fed announcements in years and is going to produce a spike in volatility no matter what they say or do. If you are trying to do a little bargain hunting it makes sense to wait until that event is over.
I'm doing very little this morning. Like many others I have no confidence in positive action yet and want to see the intraday lows tested before I put capital at risk.
The bounce so far this morning is far from convincing.