Will we bounce from here?

The market is tracing out a momentum divergence although failing to close below it's October low. Classic bottoms usually make a lower low before moving higher, and this usually coincides with very pessimistic sentiment readings.

Despite all the volatility we still haven't been able to break out of the 1000-850 range. Sentiment reversals have failed to propel the market higher, in a sustained way, and the market remains far from breaching either the 75 or 200 day moving average. If you're a pure long term trend follower you would have been sitting on your hands all year and probably wouldn't be planning to enter the market anytime soon.