This is a very common issue. All deal with psychological effect :- fear and greed.
Whenever stock markets drop due to macro issue like the current one which relating to recession, there will be lot of panic and fear in the market whereby everyone are trying to escape through a tiny door.
On one hand the government from various countries trying to inject confidence to the investors but analysts on the other hands are playing the opposite role of creating more fear and panic to the investors with their latest call on cutting of target prices, downgrading of rating and rushing to guess where the bottom of the index will hit.
Those fears by the analysts have driven into the investors so any moment there is any rebound all will take the opportunity to sell and hence market rebound is already capped with lot of thick resistances.
The only way market can bottom is by letting the market itself to absorb all the selling naturally. This is usually coupled with sign of drying up in volume and tiny movement of the index or price movement.
