New Highs For Breadth and Price

Although there have been comments made by some that the market's long-term breadth has been lagging, the cumulative breadth of the S&P 500 (sum of the daily number of advancers minus decliners over the last 6 months) finished the day at new highs.

One area where breadth has been particularly interesting is the Financials sector.  Back in October, there was a negative divergence as the sector made a new high while breadth made a lower high.  In recent weeks, however, breadth has been leading prices higher.  Even though the sector is 3% below its October high, cumulative breadth is just one positive day from making a new high, which indicates positive underlying strength as we head into the heart of earnings season.

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