{"id":1062,"date":"2025-05-24T13:42:20","date_gmt":"2025-05-24T13:42:20","guid":{"rendered":"https:\/\/thetradingdictionary.com\/index.php\/2025\/05\/24\/moving-from-thrust-signals-to-a-bull-market\/"},"modified":"2025-05-24T13:42:20","modified_gmt":"2025-05-24T13:42:20","slug":"moving-from-thrust-signals-to-a-bull-market","status":"publish","type":"post","link":"https:\/\/thetradingdictionary.com\/index.php\/2025\/05\/24\/moving-from-thrust-signals-to-a-bull-market\/","title":{"rendered":"Moving from Thrust Signals to a Bull Market"},"content":{"rendered":"
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The bullish signals stacked up in April and May, but most long-term breadth indicators are still bearish. SPY and QQQ showed signs of capitulation in early April<\/a> and rebounded into mid April. A Zweig Breadth Thrust triggered on April 24th and several other thrust indicators turned bullish<\/span> in May. We also saw SPY and QQQ break their 200-day SMAs<\/a>. TrendInvestorPro is tracking <\/span>these signal<\/a>s and relevant exit strategies. <\/a><\/p>\n<\/p>\n

These are bullish indications for large-caps and, perhaps, stocks in the top half of the S&P 500. However, I would not call it a bull market until participation broadens. The chart below shows the S&P 500 EW ETF (RSP) and S&P MidCap 400 SPDR (MDY) moving back below their 200-day SMAs. The S&P SmallCap 600 SPDR (IJR) never came close and remains a big laggard. \u00a0\u00a0<\/p>\n<\/p>\n

The bottom window is perhaps the most telling. It shows the percentage of S&P 1500 stocks above their 200-day SMAs. This long-term breadth indicator did not cross above 50% in May. Except for a 1-day dip on January 10th, this indicator was above 50% from December 2023 to February 2025 (bull market). It broke below 40% on March 10th and has yet to fully recover (bear market). <\/p>\n

At the very least, a move above 50% is needed to show broadening participation worth of a bull market. This is how the market moves from bullish thrust signals to a bull market. \u00a0Until such a move, we are still in bear market mode and risk remains above average for stocks. Note that the S&P 1500 includes large-caps (500), small-caps (600) and mid-caps (400). Around 2\/3 of components NYSE stocks and 1\/3 Nasdaq stocks. It is a truly representative of the broader market.<\/p>\n

Exit strategies are just as important as entries. The Zweig Breadth Thrust and the 5\/200 day SMA cross provided entry signals in April and May. We now need an exit strategy. TrendInvestorPro put forth exit strategies <\/a>for both signals and these are updated in our reports. This week we covered the gap zones in SPY and QQQ, long-term breadth signals, big moves in metals and continued strength in Bitcoin. Click here to take a trial and gain full access. <\/a><\/p>\n

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The bullish signals stacked up in April and May, but most long-term breadth indicators are still bearish. SPY and QQQ showed signs of capitulation in early April and rebounded into mid April. A Zweig Breadth Thrust triggered on April 24th and several other thrust indicators turned bullish in May. We also saw SPY and QQQ…<\/p>\n","protected":false},"author":1,"featured_media":1063,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/1062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/comments?post=1062"}],"version-history":[{"count":0,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/1062\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media\/1063"}],"wp:attachment":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media?parent=1062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/categories?post=1062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/tags?post=1062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}