The U.S. stock market triggered a rare Zweig Breadth Thrust last week, marking only the 20th instance since 1940. This technical signal, which occurs when a large number of stocks rally over a short period—typically 10 days—has historically preceded strong gains in equities. Of the previous 19 occurrences, only three resulted in new lows before the market achieved double to triple digit percentage gains. The latest thrust has prompted some market analysts and investors to add to their long positions. In addition to equities, the most risky corporate bonds, or high-yield bonds, also triggered a breadth thrust, often referred to as breakaway momentum, a concept popularized by Walter Deemer. This development has been highlighted as historically positive for stocks. Other indicators, such as the Three-Day Price Thrust Indicator, have also fired and are noted as historically positive for U.S. stocks. Studies since 1929 further support the significance of these breadth thrust signals. Some analysts suggest that the recent breadth thrust event supports the potential for the S&P 500 to reach new highs, with specific projections targeting the 6,738 to 7,122 range for a larger market top.
S&P 500 Stock Market Analysis – Trust the Thrust Last week’s Zweig Breadth Thrust event adds weight to the evidence of a Bullish resolution, matches our EW count, and strongly suggests the S&P 500 can reach $6738-$7122 for a larger top. 🔗 to the full article is👇 Follow for
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Our Senior Research Analyst, @DeanChristians’s Apr 29 report, "High-yield bonds join the breadth thrust party", was featured in @MarketWatch's article, "High-yield bonds gain momentum in 'rare' way that's historically positive for stocks, according to SentimenTrader” https://t.co/x6ui9vjd7n