I am becoming the boy that cried “Zweig” . Like a begging dog, I have to remind myself, you don’t always get what you want. Here is that reminder in the chart below. Since January 2011 we have had 7 previous attempts at a Zweig Thrust Signal, and all failed. That is a lot of disappointment. But still, just 2 away? That March 2011 was pretty darn close too.
For those that have no idea what I am talking about, there is an index call the Zweig Breadth index which is simply the 10 day moving average of the NYSE advance / decline line. Dr. Zweig calculated back in the seventies (?) that when the market moves from oversold (below 40) to overbought (61.5) in a ten day period, that special movement or signal indicates extreme buying and foreshadows a 12 month bull run. It has a high 80% accuracy, hence we are excited for some bullish confirmation. It still has to produce and we only have four more days to get the chart below up and over the chin-up bar.
Come on bulls, pull!