There are two issues driving the market action right now.
The first is that many stocks and indexes are grossly oversold. Oversold simply means that stocks have dropped more than is reasonable, and it is likely that there will be traders trying to catch a rebound. When the Nasdaq drops for seven straight days, there is an expectation that it is going to bounce back fairly soon.
But while traders have been trying to catch an oversold bounce for a week now, they are faced with a second issue that is making it difficult. The selloff has been so intense that it has trapped many market participants, and now they want to escape into any strength. They are inclined to sell bounces because they no longer feel confident that a market bottom may be forming. They are more worried about the downside and no longer fear missing out on the upside.
The other thing that the market is missing right now is some sort of catalyst. A catalyst may be positive news, such as the Fed indicating it is becoming a little more dovish, or a catalyst may be bad news that pushes the market sharply lower but discounts the worst. A reversal on bad news is often a better catalyst than a spike in the good news.
Traders are focused on some oversold action Wednesday morning, but there isn't anyone talking about a bottom like they were a month ago. It is likely that the consensus view now is that the lows of June will be breached. Oil, bitcoin, and bonds have already challenged their lows, and stocks are very likely to catch up to the downside.
I'm doing a little short-term trading, but I have no interest at this point in building longer-term positions. Don't let a little oversold bounce action make you too bullish.