Rally Keeps Rolling

Despite denials from the Administration, US (and global) equities continue to rally this morning on optimism regarding a lifting of tariffs on Chinese imports.  

While the S&P 500 is only just barely above its 50-day moving average, breadth, as measured by the 10-day A/D line, is near historic highs. As of yesterday’s close, the 10-day A/D line crossed above +2000 for just the fourth time since at least 1990 (there were no prior occurrences before 2005).  Normally, we consider a reading of +1,000 to be strong, but +2,000 is really strong breadth. The fact that this historically strong reading came so soon after a historically weak reading suggests more than a hint on indecision on the part of investors.