A technical rally is not an uncommon event. In fact, many investors have identified some great long term holdings by being on the lookout for upward price movements during a period of general decline.
Technical Rally
An upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.
Technically Strong Market ...
Technical rally
Short rise in securities or commodities futures prices in the face of a general declining trend.
technical rally Increasing security prices caused by technical factors that affect security... technicals Short-term trends that analysts use to predict minor fluctuations of securities and/or commodities.
A moving average of the A/D Ratio is often used as an overbought/oversold indicator. The higher the value, the more "excessive" the rally and the more likely a correction. Likewise, low readings imply an oversold market and suggest a technical rally.
When the indicator is moving towards its lower limits it's the signal of oversold situation and shows that it's worth taking a technical rally.
usually downward, in the price of an individual stock, bond, commodity, or index. If prices have been rising on the market as a whole, and then fall dramatically, this is know as a correction within an upward trend. Antithesis of a technical rally.
 See also: Market, Rally, Stock, Vesting, Investing
  
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