Chart of the Day - Wednesday, November 23rd, 2022

Today’s Chart of the Day was shared by Andrew Thrasher (@AndrewThrasher). Breadth has made some noteworthy improvements lately. While the S&P 500 remains below its 200-day moving average, over 61% of its members are above their respective 200-day moving averages. Short-term breadth has also bounced back from extremely low levels. The percentage of stocks above their 50-day moving average has gone from 3% to 89% in less than two months. Andrew points out that, that when this indicator has risen from <5 % to >85%, it has historically signaled further gains. Its reputation has been slightly tarnished by its recent failure in August. However, this indicator has generally done a good job of signaling the start or continuation of a bull phase over the past thirty years.