If This Happens, Strong Bounce Will Ensue 如果这种情况出现，强烈反弹会开始

US stock market is bouncing after relentless selling in the past few days. Technically, the market is extremely oversold and extremely pessimistic on all metrics. It is waiting to explode upward with any good news or when technical resistances are broken on the upside. Because of the selling extreme of the last few das, what ever need to be sold probably have been sold , instead,  people are waiting for opportunity to buy. The other positive there must be a lot shorts are still open, when short covering is triggered, huge bounce will ensue. I am going to use the Nasdaq Composite as an example :If the Nasdaq Composite is able move above its near term resistance at 7712, it may rally and recover 38% of the drop from all time high to yesterday's low, and that level is 8200. Although this will still be a oversold bounce on a down trending market. Market will likely continue to go down after bounce.

在过去几天的无情抛售之后，美国股市正在反弹。 从技术上讲，市场在所有指标来看都是极其超卖且极其悲观。 当有好消息或技术阻力被突破时，它会向上爆发。 由于最近几日的抛售极端情况，可能需要卖的股票都可能已经卖掉了，相反，人们正在等待买入的机会。 另一个积极的情况是市场上肯定有大量空头头寸未回补，当触发空头回补时，市场将会出现巨大的反弹。 下面我将以纳斯达克综合指数为例解说：如果纳斯达克综合指数能够突破其近期阻力位7712，它可能会反弹从历史高点至昨天的低点跌幅的38％，该水平为8200。 尽管反弹，这也只不过是在下降市场中的一个超卖反弹，反弹后，市场跌势仍会继续。