Market breadth supports bullish S&P view

Market breadth measures, such as the NYSE Advanced/Decline Line, will be crucial in determining the ultimate direction of US stocks in the coming weeks should the index approach new highs, says Chris Senyek of Wolfe Research. Signs of selectivity in the % stocks above their 200-day moving average also calls into question the validity of bearish views based on January’s correction. According to Senyek, until there is a significant shift in breadth measures, a bullish stance should remain in place.

Source: Wolfe Research