Was That A Breadth Thrust?

JC Parets
July 21, 2022

One thing we know about markets is that breadth thrusts tend to cluster together near the beginning of new bull markets.

Breadth thrusts are NOT signs of exhaustion. They are evidence of new trends emerging.

Now, after a few days of strength in stocks and crypto, investors are wondering: Was that a thrust?

Well, almost. But it's not quite there yet.

Here's one that's close. We're looking at the % of stocks in the S&P500 making new 20 day highs.

We saw over 40% of stocks hit new 20 day highs this week. We're looking for 55% to categorize this one as a true breadth thrust:

And this isn't the only one.

There are others out there building, especially when you dive into the individual sector level.

We will continue to monitor these developments. But just to be clear, I believe this cluster of breadth thrusts is not a want, but a need in order to signal that the next bull market has begun.

Maybe it already has. Who knows?

But we'll need to see these breadth thrusts showing up, like they have before early on in new uptrends.

Do you see any others forming out there?

Please chime in. We love to hear from you!

Fresh off Tuesday night's Mid-Month Conference Call, we have our ASC Research Q3 2022 Playbook ready for Premium Members.

Click here to download it.

The Playbook takes a step back and looks at things from a more structural perspective.

If you’re specifically looking for more tactical opportunities, review the Mid-Month Conference Call recording and chartbook.

Let me know what you think!

JC

 

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