You bought the dip, but do you sell the rip?

NASDAQ - (when) do you sell the rip?

NASDAQ continues the violent bounce today. We have gone from extremely oversold to much less oversold in two sessions basically. Note the first resistance coming in around these levels as we approach the negative trend line. Next level to the upside should this overshoot is the 15240 level, right where the 21 day comes in. The problem with selling the rips is that nobody is there to sell them...often leading to the bounce overshooting. Let's see how this behaves into the close, but we are in the rip phase, so trade accordingly.