Chart of the Day - Tuesday, May 13, 2025

🏆  Today's Chart of the Day was shared by Willie Delwiche (@WillieDelwiche).
  

• The S&P 500 ($SPX) closed at its highest level since February as the V-bound continued today. It’s sitting only 4.2% below all-time highs after bouncing more than +18% from last month’s low (on a closing basis).
   
• Many dismissed the recent Zweig Breadth Thrust, but $SPX has gained nearly +10% since it triggered three weeks ago. Willie highlights another rare signal that fired yesterday: the deGraaf Breadth Thrust.
   
• Popularized by Jeff deGraaf, this breadth thrust triggers when the percentage of 20-day highs in the S&P 500 spikes above 55%. While the signals in 2002 and 2011 were notable failures, $SPX has been higher a year later 97% of the time across 30 signals since 1979.
   

The Takeaway: Breadth thrusts are piling up, with the percentage of 20-day highs recently spiking above 55%. These thrusts reinforce the bull case and suggest we’re in the early innings of a multi-month rally.