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Stock Market Reversal 2025: Is the Bottom In?
After a monster selloff that brought panic-level market breadth, the stock market reversal in 2025 is showing some serious juice. In today’s session, the market gapped down hard—2% at one point—but pulled a full reversal, remounting key levels and closing strong. The bounce? Fueled by tech strength, meta earnings, and the market betting that Trump will eventually cave on tariffs.
But the question remains: is this the bottom, or just another trap?
Let’s break it down.
Today’s Reversal Was the Real Deal
We saw:
- A flush under key support followed by a remount—a setup that’s become the new bread and butter of this market.
- Explosive after-hours moves in tech, especially Microsoft, which surged nearly 28 points—huge for a name with that kind of float.
- A sentiment shift, with many big names bouncing hard and making big moves off the lows.
If you’re still reading the news to make your trading decisions, you're late. The market told us this was coming. When market breadth hit sub-10 on the T2108, that was your “sell your house and buy stocks” moment. No setup has higher historical odds of a bounce.
Watchlist: Top Setups to Trade Tomorrow
This is not a swing trader’s market—yet. But day traders? We’re eating. Here's what to watch:
$AMD
- Setup: W pattern + trendline break
- Target: 103s on a week-out call
- Note: Slow mover but has range when it gets going
$PLTR
- Setup: Relative strength monster
- Key Level: Tap into 124–125 = short it
- Plan: Gap up = short, back and fill = long
$COIN
- Setup: Strong flag formation
- Breakout Level: 205–206
- Note: If crypto holds, this could fly
$ODD
- Setup: Earnings gap with no pullback
- Plan: Watch for a flag to form—then pounce
$MSTR
- Setup: Inside day
- Plan: Day trade setup—only valid if it breaks over today’s high
$NVDA / $TSM / $MSFT
- These tech names all have space to run.
- Use options or look for first pullbacks to trend entries.
How to Trade This Market
This is not a market to get lazy in. Be precise.
- Don’t chase gap ups. Wait for back-and-fill action or trend continuation above levels.
- Knife under, remount setups are real. Trade them.
- Avoid low liquidity crap. Big boys only.
- Options trades work great. Use ATRs to choose the right strike and timeframe.
Remember: News Follows Price
Every time we’ve seen T2108 dip below 10, the news cycle starts to shift. It’s not the news driving the market—it’s the market that starts turning before the news catches up.
If you’re serious about mastering this kind of tape, you need to stop reacting to headlines and start reacting to levels, candles, and flow.
Want to Trade With Me Live?
My 60-Day Bootcamp is the longest-running live trading education program in the world. We trade live every day. You’ll learn real strategies, risk management, psychology, and technical setups—from a real trader who does this for a living.
About the Author
Kunal Desai is the CEO of Bulls on Wall Street and a veteran trader with 15+ years of experience. He’s taught thousands of students worldwide and was one of the pioneers of live trading education. When he’s not trading or mentoring, he’s usually hanging out with his new baby boy, jamming to music, or cracking jokes on Twitter.
