Rare Breadth Thrust Triggers
$SPY $DIA $QQQ $IWM
A rare Zweig Breadth Thrust triggered today.
What it is -
The Zweig Breadth Thrust is a market momentum indicator developed by Marty Zweig that attempts to identify the beginning of a new bull market. It focuses on market breadth, i.e., the number of advancing vs. declining stocks, and tracks how quickly participation broadens across the market.
📌 Zweig Breadth Thrust Formula
The calculation is based on the 10-day exponential moving average (EMA) of the daily advance-decline ratio, where:
Marty Zweig specified the following conditions for a bullish breadth thrust:
ZBT rises from below 0.40 to above 0.615 within 10 trading days or fewer.
This sharp rise indicates a sudden and broad shift in market participation.
Why It Matters -
It guarantees nothing, but the SPY 0.00%↑ has never been down a year later following one.
Personally, I think the gaps below are still in play to get filled, but this indicator triggering gives me more hope that whatever turbulence we may see in the equity markets could likely be short lived.
The overhead gaps in SPY 0.00%↑ and DIA 0.00%↑ could be near term targets before a pullback, but zooming out, I have increased risk exposure as long as the indexes are above the Aug ‘24 lows, and I’m cash/looking to short on a break below. If small caps don’t recapture that level, I’ll be watching them as leaders to the downside.
