The good news: By closing at a record high on Wednesday, the S&P 500 officially entered breakout territory. The bad news? At least one market technician still wants to see more before giving the green light for further gains.
What’s holding him back? Market breadth.
Breadth is the market term for the number of stocks participating in a rally, and it was pretty bad for a while there. It has since improved—63% of S&P 500 components trade above key moving averages—but not enough to “confirm another sustained rally leg,” according to Piper Sandler’s Craig Johnson.
