Chart of the Day - Friday, July 29th, 2022

Percent of $SPX stocks at 20-day new highs rose above 55% for first time since June 2020 (concept thanks to Jeff DeGraaf). This marks the 3rd breadth thrust signal in the last 8 trading sessions. Broader than off the March and May lows. @WillieDelwiche @RenMacLLC pic.twitter.com/ofhLRPyyv8

— Ed Clissold (@edclissold) July 29, 2022

Today’s Chart of the Day was shared by Ed Clissold (@edclissold). Several technicians have noted that a rare breadth thrust triggered yesterday. The percentage of S&P 500 stocks at 20-day highs spiked above 55% for the first time since June 2020. This signal, popularized by Jeff deGraaf, often marks the start of a multi-month rally. Of course, no indicator is perfect and there have been some notable failures, such as in 2002 & 2011. This doesn't guarantee that the bottom is in, but it does strengthen the bull case. Watch for other potential breadth thrusts in the coming weeks to confirm this signal.