Friday saw the bulls hold the 200-day moving average and bounce hard and fast, erasing roughly 87 points off the lows.
Today it is continuing with the same, up almost 2%, the bulls are staging a very solid rally in the market.
This is no surprise here. Everyone was watching the 200-day MA, and when the test happened, the algos and computers began instanly buying up the market.
Even if this is a dead cat bounce, these kinds of rallies can last 3-4 four days before finally giving up. So there is a very solid chance there is more upside remaining in this market going forward, this week.
Every indicator that I follow, hit incredible extremes on Friday at its lows, and in the past it is those kinds of extremes that we saw that leads to massive market rallies to give investors, if nothing else, a temporary relief.
Below I have put together, my favorite bounce plays to watch going forward. They, like most other stocks, have been hit hard of late, and are holding support at key technical levels. Check ’em out!