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Thread: Breadth Thrust: A Gigantic Bullish Indicator is Flashing

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    Default Breadth Thrust: A Gigantic Bullish Indicator is Flashing

    Seems many are "going to cash" due to "uncertainty" come the election just as we get this.

    Over the last three months the Invesco S&P 500 Equal Weight ETF (ESP) has outperformed the SPDR S&P 500 ETF (SPY) 13% to 10%. The reason why is that a huge cut of stocks are rising, not just the largest stocks. The last ten days have seen the biggest jump, with advancing stocks outnumbering decliners 2 to 1. That is called a “breadth thrust” and it is very rare and very bullish. It has happened just 29 times since 1990, and 96% of the time the market is higher 12 months later.
    https://www.nasdaq.com/articles/a-gi...ing-2020-10-12

    More perspective from Barrons.

    Of course, higher in a year is very different than higher next week. While breadth thrusts point to a higher market in the future, they’re often followed by short-term drops. The last one, for instance, occurred on June 5, when May’s payrolls data showed a massive increase in the number of jobs that the U.S. economy had added. The market peaked one day later, and then the S&P 500 dropped 7% over just three days. Still, even including that drop, the index has gained 8.8% since then.

    The takeaway: Dips are to be bought. “The market is not going straight up,” Lerner says. “But bull market rules apply.
    https://www.barrons.com/articles/dow...te-51602290636


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    Default Re: Breadth Thrust: A Gigantic Bullish Indicator is Flashing

    Just read that of the "500", 174 (34%) have not risen more than 10% in 2020. 25 have gains of over 50%, and 26 have losses over 50%.

    176 (35%) of stocks in the 500 are down more than 10% this YTD.

    Not sure of the context but it makes sense. Tech up, Oil, Financials, Travel never bounced back.

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