Chart of the Day – Thursday, March 28, 2024

Normally, after we see big stock market crash events and we get back to 80% or more S&P 500 stocks above their 200-day, this trend tends to continue for some time…

Strength begets strength…

Guess what… we just crossed 80%…

Is this time going to be different? pic.twitter.com/p6wTBhNkvy

— Grant Hawkridge (@granthawkridge) March 28, 2024

Today’s Chart of the Day was shared by Grant Hawkridge (@granthawkridge).

• The S&P 500 closed at a record high today, concluding a positive week, month, and quarter.

• As of today, 86% of S&P 500 stocks are above their 200-day moving averages, marking the first weekly close above 80% since August 2021.

• Grant points out that when breadth returns to healthy levels ( >80%) after a washout, it often stays elevated for several months or even years before deteriorating.

The takeaway: The S&P 500 survived on narrow breadth, but it could really thrive now that more stocks are participating.