Breadth, Models Align With Bottoming Process
The CCM Market Models have shown some meaningful improvement in the last two weeks. The levels on the left side of the table below represent the low-end of bullish territory. Thus far, only the 80-20 Correction Index has pushed back into bull mode, but the other models are making progress.
Market breadth speaks to the percentage of stocks participating in a rally. The Summation Index, shown below, is an intermediate-term measure of market breadth. The recent turn higher looks similar to the period near the October 2011 low (compare green boxes). The S&P 500 remained volatile (orange box), but eventually pushed higher.
