A very rare signal was triggered, and history? Definitely in its favor
As we recently told you, market breadth is improving, and with it, important technical signals are starting to light up.
But now, an even rarer signal is arriving.
Meet "SuperZweig", an advanced and unique version developed by Jason Goepfert of SentimenTrader.
This signal is triggered only when extremely strict conditions are met:
- The percentage of rising stocks ranges between 35% and 64%
- Measured over 30 days
- Using a 10-day moving average.
And the most surprising part?
The signal has been triggered only 7 times in over 60 years.
This is a rare sample, but when it appears, it works:
Median return of +10.5% within 3 months
+17.8% within six months
+22.9% within one year
Does this guarantee the market is about to run higher?
Absolutely not.
Even Simon White, Bloomberg's macro strategist, qualifies this by saying the current environment is not easy for stocks, and it may not be the time to expect new highs in the short term.
But, ignoring a rare signal with such a track record?
That would be a mistake.
Could we be heading for greener weeks?
As you know, in today's market, every indication is important.