TradingEdge Weekly for Aug 7 - Weight-of-evidence bullish signals, Bollinger Band squeeze setup, JK Economic Barometer spike, V-shaped reversal near highs, Two-sector new high, Three sectors to avoid, Copper divergence

Key points:

• The Copper/Gold Ratio below 0.17 shows a 100% 12-month win rate for the S&P 500; over 90% of sectors with their 50-day MA above the 200-day MA has proven to be a reliable trend-confirmation signal; and S&P 500 insider selling dropping below 1,800 signals insiders don't view stocks as overvalued - together these three weight-of-evidence indicators lend significant support to the bullish case over the next 12 months.
• SPY's Bollinger BandWidth compressed to ≤3% followed by a break below the lower band - a classic mean-reversion setup with nearly 80% win rates over 3-4 months for both S&P 500 and Nasdaq, though short-term data suggests preparing for entries rather than buying immediately.
• The JK Economic Barometer surged from 0.864 to 3.456 on July 31; historically, when the JEB drops below 1.00 and then crosses above 2.50, the S&P 500 has a 90% win rate over the next 12 months with an average win of 16.3% vs. average loss of just -1.6%.
• The S&P 500 reversed from a 21-day closing low to a 21-day closing high in just four sessions - only 18 such events on record. By itself, the signal is inconsistent, but when it occurs within 2% of a 52-week high, returns improve to 100% positive at one year with a 13.28% mean.
• Only Industrials and Financials joined the S&P 500 at record highs; historically, when exactly two sectors hit all-time highs alongside the index, expected returns average over 11% one year later with a 72% sho