A rare and powerful technical market indicator developed by Martin Zweig that signals the beginning of a new bull market when the 10-day exponential moving average of NYSE advancing issues divided by the sum of advancing and declining issues moves from below 0.40 to above 0.615 within a 10-day window. The thrust indicates a dramatic shift from oversold breadth conditions to overwhelming buying pressure across the market. Since 1945, confirmed Zweig Breadth Thrusts have been followed by positive forward returns with a nearly perfect track record over the subsequent six and twelve months.
Example
“A rare Zweig Breadth Thrust signal triggered in early November as market breadth surged from deeply oversold readings, and historically these signals have preceded average gains of 15% over the following twelve months.”