S&P 500 Cumulative A/D Line Closing in on New Highs
Tuesday, January 17, 2012 at 12:43PM 
The chart to the right shows the cumulative breadth of the S&P 500 over the last year (daily number of advancers minus decliners). Following the recent rally in equities, cumulative breadth for the S&P 500 is within one more strong day of a new high. If breadth fails to take out the highs from November, it will mark another lower high, which is considered a negative.
In the charts below we show the cumulative breadth for each of the ten major S&P 500 sectors. Even as breadth remains below its highs from 2011, Consumer Discretionary, Health Care, and Materials are all currently at one-year highs. Consumer Staples, Financials (Yes! Financials), Industrials and Utilities all have breadth readings which are close to their highs for the year. Finally, sectors currently well below their highs for the year include Energy, Technology, and Telecom Services.
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