As shown below, 77% of S&P 500 stocks are now above their 50-day moving averages, which is the highest level seen since the April highs. Bulls have been waiting for a nice expansion in underlying breadth for confirmation of a rally, and now they seem to have it.
All of the cyclical sectors have seen huge pickups in breadth this week. More than 90% of stocks in the Industrial and Consumer Discretionary sectors are now above their 50-days. In the Technology sector, 82% of stocks are above their 50-days, and the reading is even 68% for the Financial sector. Even the two weakest sectors (Energy and Telecom) now have half of their stocks above their 50-days.
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