Oversold, but wait for the re-test

February 22, 2023 at 16:08 PM EST

Mid-week market update: The Zweig Breadth Thrust buy signal is a rare price momentum signal that's been triggered only six times since Marty Zweig wrote the book that outlined his signal. The stock market has risen every time 12 months after the buy signals. It requires the Zweig Breath Thrust Indicator (ZBT) to rise from an oversold to an overbought condition within 10 trading days, which is indeed an rare occurrence.
While the ZBT buy signal is extremely rare, the ZBT Indicator can serve as a useful short-term trading indicator when it is oversold. In the past, this has served to indicate favorable risk-reward long entry points, which seems to be the situation today.

The full post can be found here.