Strong breadth numbers have pushed the traditional A-D line to new highs. Thus the ratio adjusted S&P summation index has pushed to highs not seen since 2014. When this happens the market is showing power and thrust akin to a rocketship leaving orbit. Simply put, when a strong thrust signal like this appears, it is worth noticing and on the longer time frames, the market is forcasting a higher S&P500 for an average gain of 4 to 13%, however, not first without a pull back, odds are 55% of a pullback over a 10 day period after a S&P summation reading over 2000, one of which were are in right now.
When the ratio adjusted S&P500 summation index is over 2000:
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| New Recent Highs For The Traditional S&P500 Advance Decline Line |
This study is a precursor to use other timing tools to enter after a pull back.
Other studies are pointing to a higher S&P500 at the end of the year, more on this to follow.
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