❌ UPDATE 3: Whaley Breadth SignPost

This is update 3 for the SignPost after the Whaley Breadth Post.

If you remember The Whaley Breadth Trust is a powerful signal that has a great success rate. It was invented by Wayne Whaley in 2009. Since 1970 to 2009, the signal has occured only 12 times!

Based on the Whaley Breadth Post and January Trifecta we drew a potential map for the next 3, 6 and 12 months.

For my followers, I even made a special indicator for the Whaley Breadth here:


UPDATING we see that the SPX failed to follow the map on both the pullback and the expected 3 month gain. However, we also see that there is more tightening action than anticipated, rather than complete capitulation. The second pullback measures about -6.2% rather than the anticipated -5.5%. But rather than appreciating to +12% the SPX appreciated only +6%.

I would conclude that the current Whaley Breadth SignPost has failed on two accounts. Will continue to watch its development but so far it is not performing as expected.