A technical signal that has portended previous turning points for the U.S. stock market arrived for the first time in nearly three years, according to data supplied by its creator. But some on Wall Street suspect it may no longer be as reliable as it once was.
The technical indicator, which is known simply as the breadth-thrust indicator, was triggered on Jan. 12 for the first time since June 3, 2020. The indicator was created by retired analyst Walter Deemer in 1973 while he was working at Putnam Investments. A representative for the company confirmed that Deemer worked there between 1970 and 1980.
NED DAVIS RESEARCH