We’ve shown the chart below of the S&P 500 number of times over the last week.  The big hang-up for the market lately has been that in spite of the gains off of the February lows, the index still had not made a higher high and taken out its February lows, and it was still below its 50-day moving average.  Early in the day yesterday, it looked like we were in the midst of another failed rally, but a big reversal in the afternoon followed by a strong day today has really improved the picture of the S&P 500 from a technical perspective.  Not only is the S&P 500 above its early February highs (higher high), but it also closed above its 50-DMA for the first time in 2016.  Now, if these gains can hold for the next day or two, it’s hard to fight the rally.

higher high and 50-DMA

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