I shorted today’s close because the Zweig value for the NYSE was above 66. That extra high reading has only happened 19 times in the last 40 years. The table below outlines the previous high Zweig values. 14 out of the 19 times (74%) the next bar was a lower close. The overall average for the next bar including the positive bars was –0.61%.
Zweig readings above 66 since 1969 until present:
| Date | Value | Bar+1 Close |
| 10/14/1974 | 66.88 | -2.2% |
| 1/10/1975 | 68.03 | -0.71% |
| 1/13/1975 | 67.48 | -0.84% |
| 1/29/1975 | 66.47 | -1.41% |
| 1/05/1976 | 67.01 | +0.93% |
| 1/06/1976 | 69.61 | 1.60% |
| 1/07/1976 | 68.21 | -0.75% |
| 1/08/1976 | 67.85 | 1.46% |
| 1/09/1976 | 67.07 | +1.07% |
| 1/12/1976 | 68.81 | -0.93% |
| 8/23/1982 | 66.48 | -1.83% |
| 8/25/1982 | 66.93 | +0.80% |
| 8/26/1982 | 67.87 | -1.00% |
| 10/11/1982 | 66.86 | -0.91% |
| 10/13/1982 | 66.93 | -1.79% |
| 2/6/1991 | 67.69 | -0.73% |
| 2/11/1991 | 67.09 | -1.04% |
| 1/06/2009 | 66.96 | -2.8% |
| 9/16/2009 | 66.88 |
Total: 19
Down 14/19 = 74%
Average overall: –0.62%
Here is a picture of our latest NYSE Zweig chart:
I should have be watching during the day so we could have bought some puts, but this is the state of the Zweig which is overbought. I know all indicators are but the Zweig is a mover and it does not stay overbought for long.
- Marlin aka: RedlionTrader
