Technical Assessment: Bullish in the Intermediate-Term

As we mentioned in early November and late December, there was a big improvement in market breadth coming out of the October 30 market low. Somewhat surprising is that this strength has had staying power. We surmise that massive liquidity and continuous strong breadth has made very overheated market sentiment absolutely useless. This is tough to swallow, as it is a big input in our work. But it has happened in the past (though not very often).