The Zweig Breadth Indicator (ZBI) finally made it to oversold. We had a rare thrust watch a couple of weeks ago but it needed to make it from oversold to overbought in 10 days and it got a little lost along the way but it finally made it there taking 14 trading days to do so. This disqualifies this move as an official Zweig Breadth Thrust. Still 14 days is pretty good.
Since the March 9th lows we have had four trips from oversold to overbought. The first was a ZB Thrust which took just 6 days to make the journey. we went all the way to October before revisiting the oversold area and then rallied to the January highs taking 37 days from October until Christmas to get to the overbought area. The next test was the February lows of this year which took 24 bars to make it from oversold to overbought. That makes our latest trip the 2nd fastest since the March 9th 2009 lows.
The table below shows the 4 incidents along with the number of days to achieve oversold along with the maximum gain the market made after oversold was hit.
| Date of Low |
# Days |
Max Gain from Thrust |
|
03/09/09 |
6 |
37.4% |
|
10/30/09 |
37 |
1.96% |
|
1/29/10 |
24 |
7.03% |
|
5/25/10 |
14 |
? |
