Wheeee! That was exciting!
Fortunately, we were expecting the bounces yesterday morning and, even more fortunately, we expected them just to be bounces and my opening call in our Live Member Chat Room was:
Looks like a bit of a bounce this morning and we'll see how far but the Dow is the laggard to the upside and, if we get over 24,350, you can play /YM bullish with tight stops as long as the VIX keeps going down (now 1,580) and the Dollar stays under 95 (now 94.75).
The Dow flew higher but we were already taking it off the table at 10:16 with a non-greedy exit:
Don't be greedy on /YM longs, of course, 150 points is a quick $750 per contract and you can get back in over 24,500 with tight stops below that line if you are worried about missing out.
Forutnately, we had laid out the likely bounce lines in Tuesday Morning's Report so our Members were prepared for AND NOT FOOLED BY the morning "rally". My comment on Tuesday was:
Notice how technically neat the S&P is behaving, bouncing right off the 50-day moving average at 2,716 and that's exactly down 2.5% from the high at 2,785 so we're right on the money with our 5% Rule™ and that means we'll watch for 14-point bounces to 2,730 (weak) and 2,744 (strong) though anything over our 2,728 line is a pretty bullish recovery for the moment.
Other bounce lines will be: