We discussed it earlier this week, but now that the weekend is here, it’s a good idea to take a step back and recognize what’s going on.
The bottom line is this: the number of Breadth Thrusts are adding up.
For only the 4th time ever, the S&P500 gained at least 1% for 4 consecutive days. According to my pal Ryan Detrick, a year later it has been up more that 20% every single time with an average gain of 28%.
Over on the Nasdaq, we just saw the strongest 4-Day Breadth Thrust in History, when looking at the Advance/Decline Breadth %. These are characteristics of bull markets. You can check out the MacroCharts here.
Meanwhile, on Friday we saw over 90% of stocks in the S&P500 above their 10-day moving averages. According to Ed Clissold over at Ned Davis, since 1982 the S&P500 has been higher a year later 35 out of 36 times.
And for you Martin Zweig fans out there, we also saw a Zweig Thrust Indicator go off this week.
So just to reiterate my main point, the number of breadth thrusts are adding up.
And one thing we know from experience is that breadth thrusts are not evidence of exhaustion. In fact, it’s quite the opposite.
We regularly see clusters of breadth thrusts near the beginning of new uptrends, and early in Bull Markets.
Make what you will of it, but it doesn’t surprise me one bit.
Sentiment has been bleak, with some of the most bearish readings in over half a decade, even worse than during Covid.
How about you?
We’ll be discussing all of this on Monday night March 21st @ 6PM ET on our Live Mid-month Conference Call.
Premium Members can register here if you haven’t already.
And if you can’t make it live, the replay will be available shortly after the completion of the call, as well as the slides to download.
See you then!