Zweig Breadth Thrust rose to 59.78 today, when 60 is the line in the sand for ZBT. The last time ZBT was this high was back in late October. In late October it pushed well above 60. This happened about two days before the markets rolled over.
4wk New High/Low Ratio rose to 92.17 today. This starts to show overboughtness at this level but the signals are better when this gets to 95, like it did in late October along with ZBT.
We are nearing an overbought situation that is not likely to be sustainable because if everybody’s in, then who ya gonna off load to? But if we get a cooling off period tomorrow and/or Thursday then these two gauges will back off and recycle lower. A 5-6pt rally tomorrow in the $SPX may be enough to push these two deep into overbought territory. On the other hand, a rally of 2-3pts or a minor down day will allow these to turn south.
At FreeStockCharts.com, the only place I know of where you can track these, ZBT is T2103 and 4wk New High/Low Ratio is T2122.
Chart of $SPX showing the ADX crossing up through the -DI line today. This signal should give the rally several more weeks to run which may allow the RSI to push to or above 70 at which point it’s time to start thinking defense.