Squawk Morning Briefing: Missed It

Tuesday’s positive breadth go us closer to generating a thrust signal, but it fell short of the mark with a reading of 59.55% compared to the 61.50% needed. Even if we were to be generous because of the last weeks holiday and allow for an extra day to reach the required level, it would be unlikely that we achieve it. The reason is that breadth was quite strong on June 25th and that is the day which would drop out of the moving average calculation. So breadth today would need to be equal to that of the 25th just to keep the indicator from falling and even stronger to drag it up to the levels needed to generate a thrust signal. Even then, one could argue that the signal was generated on the 11th day.

Not realizing a breadth thrust signal doesn’t mean we won’t head upward and we’ll continue to watch the indications from the wave structure as to the likely path.

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