Where Will The Market Go - When There's No One Left to Buy?

After a day of upside on Wednesday, the market continued to sell-off on Thursday. Friday was another up day but lacked any kind of authority. In the last couple of blog posts, I was wondering if the market would bounce following an undercut of a prior major low. Last week's price and volume action, however, suggested that there was no one left to buy. It seems that the retail investor has given up and potentially so has the die-hard bull. Following the Fed meeting on Wednesday, the market was up but then collapsed right back down to new lows. So where will the market go when there is no one left to buy?
If retail investors and die-hard bulls have given up, I would expect to see the bulls continue to liquidate and the short sellers continue to sell the market down to the highs just before the COVID market crash where you would expect to find support. That said, we could see a few short-covering rallies along the way.

All in all, the market looks pretty weak and poised for lower lows. The Nasdaq heavyweights AAPL, TSLA, MSFT, GOOG, AMZN, NVDA, and FB continue to fall most of which have undercut prior lows with little to no attempt to rally. TSLA and GOOG appear to be the only ones that haven't undercut major lows from May yet. I say yet.. 

With so many stocks getting extended to the downside, the market would appear to be significantly oversold. However, oversold markets can continue to sell especially if there's no one there to buy. I expect that we will see further downside followed by intermittent short-covering rallies as more die-hard bulls liquidate, and short sellers continue to do their thing. If you are a skilled short seller, one can continue to campaign stocks to the downside. However, if you are not, the best place to be is on the sidelines until things start to improve in a bullish way.