Breadth Looking Better Than Price

Regular readers know that the rally off the February lows has been accompanied by impressive breadth, which is typically an ingredient of sustainable rallies.  Taking a much shorter term look at breadth, it is interesting to note that today's breadth in the S&P 500 has been considerably stronger than the 0.6% gain in the index would imply.  As of 11:30, a net of 293 stocks in the S&P 500 were trading higher on the day.  Going back to 1990, on the 91 days when the daily net breadth for the S&P 500 has been between +275 and +300, the index has averaged a gain of 1.32% which is over twice the current percent change.  In fact, since 1990 there have been only three other days where the S&P 500's daily breadth was similar to today's rate, and the index was up less.  Is another afternoon rally in the cards?

Subscribe to Bespoke Premium and gain access to Bespoke's unrivaled stock market analysis.