For the first time in over a month, Friday showed us something different in the stock market — a bullish day that actually held up.
We’ve had plenty of short-lived rallies, but they’ve mostly been quick pops that faded fast. Friday, though, buying pressure remained consistent from the open, and liquidity stepped in throughout the session. That’s something we haven’t seen in a while.
So now the big question is: Is this the start of a real rebound, or just another fake-out before another drop?
A Shift in Market Behavior
Until now, the pattern has been pretty clear — big gaps down, followed by brief spikes that get wiped out just as quickly. Even the rally two Fridays ago wasn’t convincing, as it was really just 30 minutes of aggressive buying into the close. But Friday, the price action was different.
For the first time in weeks, the market opened positive, followed through, and stayed strong. That’s a real change from what we’ve been seeing, and while it doesn’t guarantee anything, it does raise the possibility that we’re forming a more meaningful floor.
That said, we’ve had plenty of fake signals during this correction. The Nasdaq (QQQ) is still in no man’s land, with no clear technical support. The S&P 500 (SPY) is showing some signs of stabilization, but it’s too early to say whether this level will hold.
How to Trade This Market Without Guessing the Bottom
It’s tempting to go all in on bullish trades after a day like that, but history has shown that bear market rallies can be deceptive.
And yes the market is up a little today after being down pre-market.
But a better approach is to take smaller trades with shorter time frames and wait for confirmation before committing to longer-term positions.
One way to do this is by targeting key levels — if the market pushes higher and holds above resistance, that’s a stronger signal than just a one-day rally. Another approach is to focus on sector strength. Energy (XLE) and Utilities (XLU) have been leading the way, while Consumer Discretionary (XLY) continues to struggle.
For those who don’t want to play the guessing game, a Two-Way Options strategy allows you to profit whether the market moves up or down. With volatility still high, that approach has been extremely effective.
So is this the real rebound? Maybe. But in a market like this, cautious optimism beats blind faith every time.
And don’t forget to join me at 1:30 pm ET for Mapping the Market!
We’ll cover:
- What’s happening right now
- Stocks that just got interesting
- And more on how to trade these volatile markets the right way
Oh, and some shameless plugs. The Two-Way Options strategy has delivered over 85% accuracy and has produced returns that have far outperformed the overall market. Traders can enter trades for as little as $70, and the risk is strictly limited to what they pay.
And if you were on the Friday Mapping the Market session, you are sitting pretty today!
Our weekend pick, Progressive (PGR) is ripping higher and above our target right now:
It pays to join the free session!
Catch the on-demand replay here!
— Nate Tucci
