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What Kind Of Bounce Can We Expect?

Market crashes have occurred throughout history. What is happening now has happened before. As written in the book of Ecclesiastes, there is nothing new under the sun. Every market crash at some point will also experience a bounce. This current market crash has seen the Dow Jones Industrial Average (DJIA) fall by as much as 34% in just six weeks. So when a bounce does actually arrive it can be fast and sharp.

While most investors will talk in terms of points when a bounce begins, I prefer to look at retraces. A simple 0.382 retrace will take the DJIA back up to 22,550 level. So this is a very good target for traders to watch. More conservative traders should note that a simple 0.25 retrace takes the DJIA to 21,000. Either way, these are some short term targets that I’m watching for right now. Note the chart below and trade accordingly…

 

Check out Nick’s options swing trading performance right here. Have you seen what he has been buying for stock swing trades, check them out here.