Market Turn Or Zweig Breadth Thrust?

After the April 8th Daily Buy Signal Call Out, Is Market Finally Approaching a Turn?

Following our timely April 19 SubStack post suggesting the market was poised to surge toward $SPX 5,685+, the market has skyrocketed.

On Friday, it closed precisely at our initial resistance level from the post, $SPX 5,525. If that level is surpassed, I anticipate the market will climb to the next range of 5,685–5,750. At that point, the market will face a critical decision.

Let’s explore the potential scenarios and what I believe is most likely to unfold next.

Our Track Record

The System keeps identifying major Hourly and Daily Buy & Sell Signals that are driving significant market movements.

In this Stack, I’ll dive into what The System is currently indicating and how the market might evolve over the coming weeks.

Daily Buy Signal Status

The Daily Buy Signal was activated at the close on April 8th. The following day, April 9th, the S&P surged by over 500 points after Trump announced a 90-day delay in tariff implementation.

It’s been a turbulent ride since then. After the initial one-day spike, the market dropped 380 points over the next 7 days. It then rebounding 400 points over the last 4 days, closing the week at 5,525—our highest close since the Liberation Day tariffs were announced.

Now, the Daily Buy Signal, nearly three weeks old, is approaching its end. What’s next?

I always keep an open mind. The market faces a decision, and the Daily Buy Signal suggests it will need to happen early next week.

There are three potential outcomes:

Zweig Breadth Thrust: The market would need to break through my Bull/Bear band at $SPX 5,700–5,750 next week. This is the least likely of the three scenarios. It would mean the market disregards the Daily Buy Signal’s completion around Tuesday and pushes up to the 5,900–6,000 range before pausing. After that, it would retest the 5,700–5,750 Bull/Bear band and eventually hit new all-time highs.

Ignoring a Daily Buy Signal’s completion is rare, typically occurring twice a year in bull markets. These are strong moves where the market climbs for weeks without significant pullbacks, despite being heavily overbought. However, this isn’t the path I currently foresee, though it would align with a classic Zweig Breadth Thrust scenario.

Next, I’ll discuss the two more probable paths, both involving a Daily Sell Signal triggering next week, followed by a sharp decline.