Fundstrat research leader Tom Lee said there were four major signs that support the idea that the stock market is at the heart of a bullish reversal.
In a new video update on the Fundstrat YouTube channel, Lee begins by noticing that on April 24th, a zweig width thrust was the S&P 500 index.
The zweig width thrust is an indicator that attempts to see the early stages of a potential bull operated by dividing the 10-day moving average of the number of stock advances by the total number of stocks.
Lee said the Zweig width of the thrust almost always signed close rallies in the stock market.
“That has happened 11 times since 1978 and noteworthy, one month, six months and 12 months later, the stock markets are always up. And it was that on April 24.”
Secondly, Lee noted that high yield options were adjusted to spread (OAS) returned to 50% of its expansion on April 23. A credit contraction spreads-the harvest difference between riskrs junk bond and “no risk” government bonds-commonly indicate stability and healthy appetite.
“This is a positive development because we are walking back from a shrinking risk. If the high yield spreads is lost from 500 [basis points] At 1,000, a retreat is guaranteed, but rather it is reversed almost all expansion back to even levels before April 2. “
Lee also said the S&P 500 saw two straight days with 90% of S&P 500 stocks rallying, a history event that led further upside down.
“This means that the stocks, within a few days apart, have been posted two days in which the advancement revenues are 90% or more. As you can see here, three times since 1979, the stocks were higher three, six and 12 months later.”
Finally, the investor note the Volatility Index (VIX) – a measure of market volatility based on data from the Chicago Board Options Exchange – closing below 31 levels.
According to Lee, VIX has signed a fall to future volatility and likely strength for equal -equal.
https://www.youtube.com/watch?v=o96TRFVC0H0
Follow us at X, Facebook and Telegram
Do not miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check price action
Surf with the sun -day hodl mix
& nbsp
Denial: Opinions expressed in Daily Hodl are not investment advice. Investors should do their appropriate hard work before making any investments at high risk to bitcoin, cryptocurrency or digital assets. Please advise that your transfers and trading are at your own risk, and any losses you can achieve is your responsibility. Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, or the sun -day hodl an investment advisor. Please note that the day -to -day hodl participates in affiliate marketing.
Formed image: midjourney
