This type of low volume bounce back to resistance has me itching to straddle the market…buying a put and a call on the same strike for the same month. The reason is that its very likely that the bounce could fail. I have posted numerous negative charts below included the dreaded head and shoulders and three peaks and a domed house.
So, if I’m so bearish, why not buy just a put? For the same reason. Every trader is looking at the same charts that I am. That means if the market can stage a rally, it could squirt up quickly as traders leaning on the negative side have to cover. Despite the indications that the market could continue to decline, it is very oversold and could rip higher if things don’t turn out to be as bad as expected.
Even more likely, the market could bounce around between upside resistance and downside support. In that case, I will "trade around" the straddle. I will sell the call if it the market rips higher but keep the put and wait for the market to trade back down to the bottom of the range. 
