We’ve been cautious about the uptrend phase off the April low for a number of reasons, including the lack of breadth support. While short-term measures of breadth had turned more positive, the long-term breadth conditions had remained firmly in the bearish realm. With the renewed strength in risk assets over the last week, our long-term breadth measures now indicate a healthy uptrend phase. Today we’ll dive a little deeper into one of those breadth indicators, talk about why we track moving average breadth, and show how this recent bullish signal could be a sign of stronger price action to come. Here we’re showing the S&P 500 on a closing basis along with its 50-day and 200-day moving averages. Below that, we’re tracking the percent of S&P 500 stocks above their 200-day moving average, followed by the percent of stocks above their 50-day moving average. Starting at the bottom, we can…
