Chart of the Day - Monday, December 23, 2024

🏆 Today's Chart of the Day was shared by Grant Hawkridge (@granthawkridge). 
 

• With breadth rebounding over the past two days, the clock has started on a potential Zweig Breadth Thrust. This bullish signal occurs when breadth quickly recovers from oversold conditions.
   
• Created by Marty Zweig, this indicator is calculated using a 10-Day EMA of the number of advancing stocks on the NYSE, divided by the total number of stocks on the NYSE. A buy signal occurs when the indicator moves from below 0.40 to above 0.61 within 10 trading days or less. 
   
• While this signal is rare, returns have historically been very bullish. According to data from the Leuthold Group, the S&P 500 has always been higher six months later, with an average gain of +16.2%. 
   

The Takeaway: The clock has started on a potential Zweig Breadth Thrust. If this rare buy signal occurs over the next few days, it will be very bullish for 2025.