Zweig Breadth Thrust – Easter Monday
The S&P 500 fell slightly last week, -.1%, into the 3-day Easter holiday weekend. The tech-heavy NASDAQ lagged giving back -1.1% on the week. Gains in 2022 winning sectors, utilities, staples, and health care helped minimize the overall drop. Industrial stocks such as Caterpillar and Deere, led to the downside with a -3.4% decline, followed by a -3.0% decline in consumer discretionary and a -1.3% drop in materials. Other down groups included technology, real estate and financials. On the upside, stable, slower growth sectors led with utilities and health care climbing +3.1% each, followed by a +3.0% increase in energy stocks. Communication services and consumer staples also rose slightly.
ADP’s monthly measure of private payrolls showed a 145,000 increase in March. This was well below expectations for an increase of 210,000.
A very rare bullish technical indicator moved into positive territory last week for the first time in years. The “Zweig Breadth Thrust” indicator flashed buy for the first time since 2019. We discussed this indicator near the Covid lows in March 2020. Here’s a link to more info on the subject. The prior 14 times it’s happened the last 70 years, the S&P 500 was higher a year later each time. The median 12 month return for the 14 prior occurrences was +23% according to the Carson Group.
https://markets.businessinsider.com/news/stocks/bullish-stock-market-signal-zweig-breadth-thrust-indicator-just-flashed-2023-4
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4/7/2023: Stock Talk – Inflation 2.0, doubtful. https://www.youtube.com/watch?v=3w6-I9RGLLw
