Why Zweig Market Breadth Indicator Is the Key to This Market #markets #worden
“A technical indicator used to ascertain market momentum. The breadth thrust indicator is computed by calculating the number of advancing issues on an exchange such as the NYSE divided by the total number of issues (advancing + declining) on it, and generating a 10-day moving average of this percentage. The indicator signals the start of a potential new bull market when it moves from a level of below 40% (indicating an oversold market) to above 61.5% within any 10-day period, a sentiment shift that occurs only rarely.” (www.investopedia.com)
Market needs another two days to confirm or not, the current momentum. Small chances to reach 61.5%.
What happened in November 2012, the start of the current bullish leg?
The indicator stopped short of reaching 61.5%.
What happened in March 2009?
The Zweig Breadth Thrust indicator worked exceptionally well.