The good times on Wall Street could be just beginning according to a reliable and rare market indicator. The Zweig Breadth Thrust indicator on Friday flashed a buy signal for only the 18th time since 1945, Carson Group chief market strategist Ryan Detrick highlighted in a post on the social media platform X. When this happens, the S & P 500 averages a 23.3% gain over the following 12 months and is up 100% of the time, history shows.
The thrust is calculated by: Determining the ratio of advancing New York Stock Exchange-listed names to the total number of rising and declining issues Then finding the 10-day exponential moving average of that ratio "Very simply, it's when you go from very oversold to very overbought in less than two weeks," Detrick told CNBC Pro. "That historically tends to happen at an inflection point for markets.