As the market continues to rally, the percentage of companies now trading above their 50-day moving averages also continues to rise.  As shown below, 92% of the stocks in the S&P 500 are now trading above their 50-days.  This is by far the highest reading since mid-2006, and it is indicative of extremely strong market breadth.

Every sector except Health Care and Consumer Staples has a >50-DMA reading of more than 90%.  The Consumer Staples sector is at 88%, and Health Care is at 75%.  Telecom only has 9 stocks in the sector, and all of them are trading above their 50-days.  The Industrials sector ranks second at 98%, followed by Energy and Utilities at 97%.  While still high, Financials and Consumer Discretionary have actually seen a decline in the percentage of stocks above their 50-days over the last week.  The indicator maxes out at 100%, so there isn’t currently much upside room from a breadth perspective.  A pullback in these extraordinary numbers would be neither surprising nor unhealthy.

Source: Bespoken Research