Breadth Not Yet Confirming New Highs

As we noted on Tuesday, breadth as measured by the cumulative advance/decline line has not yet confirmed the market's recent rally to new highs.  The same holds true for another breadth indicator that tracks the percentage of stocks trading above their 50-day moving averages.  At prior highs during the current bull market, the percentage of stocks trading above their 50-days moved up to the 80%-90% mark.  Currently, just 72% of stocks in the S&P 500 are trading above their 50-days, so less stocks have participated in the recent run-up. 

In the Financial sector, just 56% of stocks are currently above their 50-days, which is the weakest reading among all ten sectors.  Consumer Staples currently has the highest reading at 83%, which is somewhat peculiar given that this sector usually only outperforms when the market is declining and not rising.  Industrials and Health Care both have readings of 80% or better as well.