Equity futures are indicating a slightly lower open this morning, but they are well off their overnight lows. Earnings continue to be a big driver of individual stock moves, and while the video-game makers are down sharply, a number of software stocks are getting a boost following their reports. GM, which just reported now, also handily exceeded forecasts and is trading up nicely on the news. 

We first highlighted it last week when the S&P 500’s cumulative A/D line made a marginal new high, but given the moves in recent days, we feel it warrants mention again. As the S&P 500 has broken through resistance around the 2,630 level, cumulative breadth has really taken off as well, easily breaking away from its prior high. Strong breadth indicates broad participation, and that’s exactly what we have seen so far this year as small caps have led the gains, and even the S&P 500 equal-weight index is outperforming the cap-weighted index by over 2% YTD.