Stocks: Will There Be A Follow Through Day?
After a significant market correction, the market will look to regain its footing. Any up day then counts as Day 1 of an attempted rally.
The next two sessions, Days 2 and 3, don’t need to show much in the way of gains. As long as they don’t undercut Day 1’s low, the rally remains intact.
For a follow-through to occur, you want it to land between Day 4 and Day 7 of the attempted rally. On any one of those days, you’re looking for one or more of the major indexes — the Nasdaq, S&P 500 or Dow — to rise 1.7% or more in higher volume than the previous day.
