The Ord Oracle January 10, 2023
Yesterday, we said, “The week of December 19 tested the week of December 12’s low on at least 10% lighter volume, then closed above the December 12 low generating a bullish signal. If a market can’t take out the previous low on higher volume, it will reverse and attempt to take out the previous high; in the current situation, this would give a target to the week of the December 12 high near 410 on the SPY. The SPY traded sideways for over two weeks going into last Thursday, and the Bollinger Bands narrowed, suggesting a large move is about to begin. The large up move on Friday on increase volume suggests the large move has begun.” Employment numbers come out Thursday and may add energy to the market. I didn’t point this out in my market letter, but January 6 was a full moon and the day SPY broke out of the sideways trading range that began December 19.
The bottom window is the Zweig Breath Thrust noted with blue and red lines. A Zweig Breadth Thrust is when the NYSE Advance/NYSE total reaches below .40, then rallies to above .60 in 10 days. The Zweig Thrust usually shows up at near a bottom in the market and gives credit that a bottom is forming, and helps to confirm an intermediate rally is beginning. There were a few Zweig Thrusts coming off the March 2020 low note on chart. We have two Zweig Thrusts so far in the current market, noted on the chart above.
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