By SentimentTrader.com

Good liquidity

The NYSE Cumulative Advance/Decline Line rose enough to set a 52-week high on Thursday, leading the S&P 500 and other major indexes.

When it did so, the S&P usually set a new high within a month or two (it took an average of 34 trading days), and future drawdowns tended to be limited relative to maximum gains.

Still negative

The AAII Bull Ratio has been below 45% for 5 straight weeks, adding to their streak, the longest stretch since February 2016. The 5-week average is now 40.1%. Per the Backtest Engine, a 5-week Bull Ratio this low during a bull market environment preceded gains in the S&P 500 over the next 3 months after 64 out of 64 times.