Another week of more red in the Bearish Breadth data and more green in the Bullish Breadth data table as stocks rallied last week and improved their breadth scores. However, with that improvement we are now seeing hardly any stocks trading on heavy volume to the downside. This chart in today’s note shows the market implications of that. I also take a look at the breadth data for the sectors as a comparison of Offense vs. Defense and where dip buyers have been focused in their buying.
Breadth Thrust Composite
A collection of multiple breadth thrust indicators based on different indices that incorporate price and volume to mark when extremely strong buying activity is taking place by the movement of individual stocks. When multiple of these thrusts occur in a short period of time, the reaction in the S&P 500 has historically been positive going forward.
Breadth Thrust Composite is at +4. Two more thrusts popped up at the end of last week. The Primary Thrust Composite is now at +1. Note we hit +1 at a counter-trend high in 2022. It’s +2 that stands out as significant.
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