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The S&P 500 has taken out two of the four key resistance levels needed to get back to new highs. As shown below, 66% of the stocks in the index are back to trading above their 50-day moving averages. This is not an extreme reading, but it is indicative of a market with healthy breadth levels.

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The leadership of the cyclicals continues to be a positive sign as well. Below are breadth charts like the one above for the ten S&P 500 sectors. As shown, the sectors with the highest readings -- Financials, Industrials, Technology, Consumer Discretionary -- have the highest percentage of stocks above their 50-days. The defensive sectors like Health Care, Consumer Staples, Telecom and Utilities continue to have the worst breadth readings. Within the Utilities sector, only 23% of the stocks are above their 50-days, and while there are only a handful of names in the Telecom sector, all of them are below their 50-days.

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Source: Percentage Of Stocks Above 50-Day Moving Averages