How to Analyze a Bounce 🏀

Big players. Big clues. Big bounce.

Ever slam a basketball down on a court? The harder it hits and the more solid the floor - the higher it rebounds. Markets behave the same way.

Take yesterday, July 16th, 2025, rumors started flying that Trump might fire Powell. The Nasdaq dropped like a rock; fast, sharp, and scary. But hereʼs the kicker: in less than 30 minutes, it reversed course and bounced back, not just to even… but higher. What does that tell us? Institutional buyers were sitting there, waiting. That bounce wasn't random, it was velocity meeting volume. If the "floor" (support) is weak, the market keeps falling. But if big buyers are present? You get a powerful snapback.

Thatʼs your clue. Did it surprise me? Heck yes. And thatʼs why risk management, stop losses, and time horizon matter because price doesnʼt always move in a straight line, even when your read is right. Hereʼs what to take away:

• A fast drop followed by a fast recovery = presence of buyers

• Big wicks on monthly charts = institutional footprints

• These moves happen across all timeframes, whether you're a day trader or long-term investor

You donʼt have to stare at charts all day to understand this just start noticing where price responds and how fast it recovers. That bounce is telling you whoʼs active in the market.

📸 Visuals included below: First is the hourly QQQ chart showing the July 16th bounce. Second is the monthly IWM chart highlighting a massive bounce off support. The bounce tells the story.

Learn to read it.