Bear markets are interrupted by secondary rallies which, generally, retrace one-third to two-thirds of the decline since the last rally. One of these rallies will eventually follow through and commence a new bull trend.

Follow-Through Days

Look for a day where the index closes at least 1% higher than the previous day and there is a marked increase in volume. This normally occurs between the fourth and seventh days of a rally.

A follow-through day that appears after the seventh day of a rally is a weaker signal.