Zweig Thrust Indicator

Back in November the 10-day exponential moving average of the percent of up issues moved from below 40% to above 60% within ten days. Marty Zweig called this strong up movement the Zweig Breadth Thrust.

Since 1957 when the S&P500 was created there have been 12 other signals. Measured after six and twelve months, returns were 100% positive (+18% and +24% on average).

The market is overbought, but this is a case where the move has been so strong and so broad that strength is likely to beget more strength.