If history is any guide(perhaps time for standard futures industry disclaimer "past performance is no indication of future results"), then any break lower will be covered, the institutions will hammer the market with about 20 buy programs, tick will hit 1000 and we will have another stealth rally to convince the masses that another bottom is in...After the buy programs are lifted and the shorts are basically squeezed into covering into another major pivot high, the sell programs will trigger, some news will appear out of left field and we will plunge again to make lower lows...I have no doubt that in the next several months we will test lower lows again...But it is the way we get there that is tricky...This "rolling chop" lower requires that you get short BEFORE these breakouts occur, otherwise you are in a position of extreme vulnerability...Not fun to be short lower lows and then see a surge of covering, buy programs hit...Have to be especially careful these days at new lows...
I hardly use bullets anymore because the fills I get when shorting on a downtick virtually guarantee I'll get shaken out. Now I use the uptick and pick my spots. Shorting the bull was easier in some ways.
Please consider for your entertainment and amusement: http://www.ralockhart.com/dailyfigures/weekahead062402.pdf