1️⃣ Identify the Trigger
Look for news, data, or events that sparked the rally (e.g., positive earnings 📊, easing inflation 🛒, or Fed comments 📢).
2️⃣ Volume Matters
Higher-than-average trading volume during the rebound indicates strong market interest 🔍📈.
3️⃣ Resistance Levels
Check for resistance points where the rally might slow or reverse (e.g., prior highs 🛑).
4️⃣ Market Breadth
A rally supported by many sectors is healthier than one led by just a few 🌍📋.
5️⃣ Follow the Trend
Use technical indicators like moving averages to confirm momentum 🚀.
⚠️ Stay cautious: Rebound rallies can be short-lived, especially in bear markets 🐻. Always assess the bigger trend! 😊
