I used to find it hard not to feel like the markets were going to keep going up during a counter-trend rally within a downtrend & vice versa for pullbacks during an uptrend (in speaking relative to the time frame, meaning we’re are currently only in a short-term/near-term downtrend with the intermediate & long-term trend still clearly bullish).
That holds especially true with counter-trend rallies during pullback, corrections & bear markets as the snap-back rallies are usually very sharp & fast, just like the preceding drops typically are. During corrections, it’s not uncommon to see a sharp bounce on the counter-trend rallies, especially off key support level as we just hit & with divergences confirming, as we also just had, as you have both the shorts covering their positions as well as the long-side dip buyers stepping in (not to mention the flexible, momentum traders that will quickly jump on either side of a rally or sell-off).
This could very well be the start of the next leg up to new ATH’s but I don’t see much, if anything in the charts at this point that indicates that is the most likely case & in fact, I can still make a solid case for more downside, especially on the daily time frames.
BTW- That 60-minute bear flag on QQQ has been foiled, at least as per my previous TL draws on the flag. However, take a look at the QQQ, DIA , IWM, SPY daily charts & you’ll see that there are still some clear bear flag patterns still very much intact although the need to breakdown soon or the symmetry will start to dissipate (i.e.- the flags grow too large or lose their form).

Depends. Sometimes I reverse from short to long or long to short but more so in instances where I’m on the right side of the trend & a key price target(s) is hit where I expect a meaningful reaction.
In this case, should the markets continue to move higher from here & this bounce starts to morph into something that appears to be more than just a run-of-the-mill counter trend bounce, then I will scale out of my market shorts (IWM & QQQ) while leaving the stops in place on the individual stocks & ETF, letting those position be taken out (or not) based on their own technicals.
I will not, however, flip from short to long on the index shorts unless the charts are clearly bullish AND offer an objective long entry with above average R/R on the trade, which I would put a near zero probability on over the next 2 weeks or so.
Hope that helps & most importantly, I wanted to impress the point that regardless of what the broad market does, there will always be both long & short trades with clearly bullish or bearish technicals that are likely to be playing out successfully.