Strong Breadth & a Down SPX

When breadth posts solid numbers and the SPX declines (during an uptrend) that has often been followed by a rebound in the next few days. The study below triggered at Tuesday’s close. It is one I have shown several times in the Subscriber Letter.

The edge isn’t huge, but it does appear to be fairly reliable. Much of the edge is realized within the 1st 2 days.