Chart of the Day - Tuesday, November 10th, 2020

Today’s Chart of the Day was shared in a note by Steve Strazza (@sstrazza). It's a chart of the S&P 500 over the past 20-years with a breadth indicator below. As the S&P 500 flirts with all-time highs, breadth has improved dramatically over the past week. Steve points out that nearly 50% of stocks within the S&P 500 were trading at new 6-month highs yesterday. It's quite rare to see that many stocks within the index printing new 6-month highs. As you can see, we've only seen two prior reading above 45% in the past two decades. Both instances occurred as the index was recovering from major bear market lows. In a comment to The Chart Report, Steve said, "These types of breadth thrusts are typically seen in the early innings of secular bull markets." For more on this, check out the full note here.