We Will See What This Rally Is Made Of

I want to know, can we keep climbing on low breadth?

Technical Edge — 

• NYSE Breadth: 52% Upside Volume (?)

• Advance/Decline: 56% Advance 

• VIX: ~$39.80

Despite an early fade on Monday morning, the markets found their footing as the bulls seem intent on taking back some momentum. It looked like they were going to fumble the ball last Friday, but since then, bulls have done a good job at keeping the market from unraveling. 

However, have a glance at the stats just above (breadth and the Advance/Decliners). They don’t tell the whole story, but Monday’s action was a low-breadth rally. That was alongside a dip in bonds and a small rally in the dollar, although the reverse is true so far today (bonds up, dollar flat/down). 

GIS

Look at how tight General Mills has gotten on the weekly chart (on the right). 

Weekly up over ~$79 has me interested in a long position, with a stop below last week’s low — call it $76. 

S&P 500 — ES