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S&P 500 experiences up to 23.4% gains following a rare Zweig Breadth Thrust (ZBT)

  The Zweig Breadth Thrust is a technical indicator created by Marty Zweig that measures rapid shifts in market sentiment. It occurs when the 10-day moving average of advancing stocks rises from below 40% to above 61.5% within 10 days.

  This movement signals a quick transition from extreme pessimism (oversold) to optimism (overbought), acting as a sign that buyers are regaining control.

  This signal is very rare – it has only occurred 19 times since World War II – and in every instance, the market posted gains over the following 12 months, with an average return of 23.4%. The most recent signal appeared on April 25, 2025.

  Although it often emerges amid bad news and widespread pessimism, the ZBT typically precedes positive periods, serving as a contrarian indicator against the prevailing market sentiment.

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