Market Reversal and Top Stocks to Watch (2025)

The stock market delivered a wild ride today, with a massive bullish reversal that left many traders stunned. What started as a bearish gap-down quickly transformed into a relentless push higher, with bulls taking full control. In this post, I'll break down what happened, why it matters, and which stocks you should keep an eye on next.

Understanding the Market Reversal: Bulls Take Charge

Today’s market action was a classic example of a bullish reversal. We started with a gap-down, driven by fresh credit news—something we've seen a few times in recent years. But instead of continuing lower, the market filled the gap without any real pullback. That’s about as bullish as it gets.

The market opened weak, but buyers stepped in aggressively, pushing prices higher without hesitation. We broke through key resistance levels, and even though we were overbought on many technical indicators, the bulls never hesitated. This is the kind of action that separates bull markets from weak, choppy markets.

Key Levels to Watch: Where Do We Go Next?

Despite the bullish action, we are now in overbought territory on many technical indicators:

• The T2108 (Percentage of Stocks Above 40-Day Moving Average) has surged to 67 from multi-year lows.
• We are nearing all-time highs on the NASDAQ, just 20 points away.
• The market has gone from extreme fear to extreme greed in just a few days.

While the bulls are in control, this is a great time to tighten your stops if you’re swing trading. If you’re day trading, this is the time to get aggressive and take advantage of the momentum.

Top Stocks to Watch After the Reversal

Here are the stocks I'm keeping a close eye on as the market remains bullish:

1. Oklo (OkLO) - Watch for a breakout over $40. It has been consolidating for four days, and a strong move over this level could trigger a powerful run.
2. Groupon (GRPN) - Setting up for a swing trade above $27. A clean breakout could lead to a significant run.
3. Oddity (ODD) - An earnings breakout with a potential gap-fill play. Watch for a move above $65.20.
4. CrowdStrike (CRWD) - A solid breakout level at $450. Earnings are still a few weeks away, making this an ideal swing setup.
5. RKLB (Rocket Lab) - Still strong after earnings. I’m holding the May 30 call options, and this setup remains hot.
6. TTD (The Trade Desk) - A clean five-day pullback after a powerful earnings move. Watching for a breakout over the downtrend line.
7. Lift (LYFT) - Another earnings mover with a solid setup. I like the $19 calls for a swing play.
8. Palantir (PLTR) - Currently consolidating after a big breakout. Any dips are buying opportunities, especially with June 6 calls.
9. QUBT (Qubits) - A tiny range day after earnings, which could lead to a big move soon.

How to Trade This Market

• If you're a swing trader, tighten your stops and lock in profits when you get extended. This is not the time to overstay your welcome in trades.
• If you're a day trader, keep pressing the gas. Momentum is strong, and the bulls are in control.
• Focus on premium setups—tight patterns with strong volume and clean levels.

Remember, overbought markets can stay overbought. But the first sign of a sharp pullback will be your warning to tighten up even more.

We went from extreme fear to extreme greed in a matter of days, and that kind of rapid shift can create explosive trading opportunities. But it also means you need to be smart with your risk management.

Stay nimble, stick to your setups, and keep pressing when you see strength. This is where traders make their money.

Here is the full tc2000 list

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🖋️ About the Author

Kunal Desai is the founder of Bulls on Wall Street, with over 20 years of trading experience. He’s trained thousands of traders to master not just the tools—but the mindset and strategy behind consistent profitability. His 60-Day Bootcamp is one of the most respected trading programs in the industry.

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