Below we highlight the current level of the percentage of S&P 500 stocks trading above their 50-day moving averages. After getting down to the lowest levels since late 2008, the indicator has jumped up to 28% after three days of gains this week. As shown, 28% is just barely above the low reached during prior pullbacks over the last year. For bulls, this means there could be a long way to go before the rally runs out of steam. For bears, this shows that even after a pretty big rally, breadth remains rather weak.
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