Rare Market Indicator Points to Potential Rally Ahead
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A Zweig Breadth Thrust occurred on Nov. 3rd when stocks broadly rallied, a relatively rare bullish indicator.
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The Zweig Breadth Thrust requires a sudden surge in the ratio of advancing to declining stocks over 10 days.
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Since WWII, the S&P 500 has been higher 3 months later on 13 of 17 occurrences of a Zweig Thrust.
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Breadth has been poor in 2022, with just 7 mega-cap stocks accounting for the S&P 500's gains.
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The recent Zweig Thrust signals a sharp improvement in market breadth that excites technical analysts.