Strong December Start

US equities are set to surge at the open this morning, kicking off the month of December on an incredibly positive note. The obvious catalyst today is new developments in the ongoing trade dispute between the US and China and a 90-day halt to any new tariffs. How long the positive impact of these headlines lasts is up for debate. 

Just as important as the positive trade-related headlines this morning is the fact that market breadth has been holding up pretty well.

While the S&P 500 made a lower low on a closing basis in November, its cumulative A/D line held up much better and actually saw a positive divergence from price. In fact, closing out the week, it was only 450 below its all-time high from September.

All it would take for the cumulative A/D line to make a new high would be two good days in a row.

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