Over the last several weeks, we have noted the fact that cumulative breadth for the S&P 500 has been lagging the overall market. In fact, for each of the higher highs that the S&P 500 made off the summer lows, cumulative breadth failed to make a higher high. The chart below shows the updated cumulative breadth for the S&P 500 over the last 12 months. Each of the red lines in the top chart correspond to a short term peak in the S&P 500, while the red lines in the bottom chart indicate where the cumulative A/D line was at the time of the short-term peak in the index.
Following today's rally, cumulative breadth made its first higher high since the spring. While breadth still has a bit to go before taking out its highs from back then, the higher high is a sign that the rally is showing signs of broadening strength.