Market watchers posted with excitement on social media Thursday that stocks had achieved the Zweig Breadth Thrust, which, despite sounding like a sophisticated workout move, is a bullish technical indicator signaling a boost in stock-buying interest.
So many financial professionals and investors on X, formerly Twitter, posted about it on Thursday that Zweig Breadth Trust trended as a topic on the social media platform.
“The rare Zweig Breadth Thrust … triggered today,” Ryan Detrick, Carson Group's chief market strategist, posted on X.
He noted that Marty Zweig, the late investment advisor and analyst, discovered the signal, “and it has a perfect track record.”
“This signal has been 100% accurate since WWII, with the S&P 500 higher 6- and 12-months later every single time. 19 for 19,” Detrick wrote. “Many mocked it when it happens, but it works,” an accompanying chart says.
Yahoo Finance has described the Zweig Breadth Thrust as a rare but historically reliable technical indicator to gauge stock market strength, one that involves notable increases in both the number of stocks rising in the NYSE and in the 10-day exponential moving average of the number of advancing stocks.
“Forget the Zweig breadth thrust — the NYSE just triggered a SuperZweig. Both extremes were significantly further than the thresholds of the original signal. The S&P 500 returned more than +20% the year following every prior thrust. Talk about a bear killer,” posted Jason Goepfert, a researcher and consultant.
Lance Roberts, chief investment strategist and economist at RIA Advisors, posted a chart from Carson Group on Friday and said: “The #Zweig #breadth thrust seen in the #market has been a good predictor of #correction lows. While that signal does NOT preclude another decline to retest lows in the near term, the signal does have a perfect track record of predicting higher returns over the next 6 and 12 months.”
Though it may not garner the attention of a quadruple Salchow at the Winter Olympics, the Zweig Breadth Thrust appears to be a market milestone worth noting.
Image: Adobe Stock
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