NASDAQ's recovering breadth
The NASDAQ's breadth has been weak despite strong inflows into tech darlings, and only now is this starting to improve.
More than 1/3 of NASDAQ Composite members are above their 50 dma for the first time in more than 40 days:
When such long streaks of weak breadth ended in the past, the NASDAQ's short term forward returns were mixed. Sometimes the NASDAQ continued to rally, other times it was followed by a sharp pullback. But all 4 historical cases saw strong gains over the next year by a median of +27%: