S&P 500’s Wider Breadth Signals More Gains: Technical Analysis
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The Standard & Poor’s 500 Index may extend its 28-month rally because more stocks are participating in the measure’s gain, according to Peter Lee of UBS AG.
The cumulative advance-decline line for S&P 500 stocks, which represents the number of daily gains minus the number of declines, exceeded its May peak this month, reaching the highest level since Bloomberg started tracking the data in September 2002. That indicator of market breadth suggested the advance that began in March 2009 could continue even as the S&P 500 failed to surpass its 2011 high this month, Lee said.