Today’s 2.39% rally for the S&P 500 was its best start to March EVER.  The index is now up nearly 10% off its intraday lows from February 11th, and underlying breadth has definitely strengthened significantly.  Below is a chart showing the percentage of stocks in the S&P 500 trading above their 50-day moving averages.  As of the close today, 69% of stocks in the index were back above their 50-days.  That’s the highest reading seen since late 2015, and it’s a healthy sign for a market that has been unhealthy for quite some time.

Nine of ten sectors now have at least 50% of their stocks trading above their 50-day moving averages.  The Financial sector is the one holdout with a reading of just 47%.

One of the most notable sectors in terms of breadth right now is Industrials, which has 83% of its stocks above their 50-days.  The Industrials sector has been a serial underperformer over the past 18 months due to weakness in global manufacturing readings.  But while still weak, manufacturing readings of late have actually been coming in better than expected in the U.S., and it has many investors looking at a sector like Industrials and thinking that the turn might be here.

The stock market’s recovery off the February lows has been rather swift, and we’re starting to see a number of stocks break out of long-term downtrend channels.  Below we highlight one of those stocks, which after trading in a downtrend since last October, has broken above the top of its downtrend channel.  When stocks break out of their downtrends, we follow them closely and look for an attractive entry point.  The top of the prior downtrend channel should now act as support, and if the stock tests that support and holds, it’s time to enter a trade on the long side.

Please enter your email address to see which stock we’re referencing in the chart below.

It has been a long time since Apple (AAPL) made a new 52-week high.  In 2014, the stock made new highs on a regular basis, but in early 2015 on February 23rd, the stock closed at $133, and that level hasn’t been touched since.  Below is a historical chart for Apple (AAPL) showing streaks of trading days without hitting a new 52-week high.  Its current streak of 256 trading days stands out on the chart, but the stock actually had a longer streak without making a new 52-week high in 2013, and it got above 400 trading days during the financial crisis bear market.

After trending lower in the second half of 2015, Apple appears to be forming a base with its intraday low from 8/24/15 acting as its floor.  It has tested and held those 8/24 multiple times this year, and gains today have left it less than $1 below its 50-day moving average.  For now, if you own Apple, you’re holding it.  If the stock can break back above its 50-day and then move above its January highs, you’ll see more investors turn bullish on the name again.