The stock market as a result of (and causing) its gyrations gets investors bearish after market sell-offs and bullish after rallies. Intuitively, of course, this makes little sense, particularly if we apply the simple example of a discount sale at the local shopping mall. From a trading perspective, yes there are times when buying the highs (think breakout strategies) makes sense, but not all strategies work all of the time. Thus, strategies must be taken in context with the current market environment.
Read my full analysis here: https://www.tradingfloor.com/posts/us-stocks-respect-the-volatility-2167878