As expected, the S&P 500 managed to punch through the 1490 resistence level helped by news of a government plan to support struggling homeowners. The controversial plan was seen by many as good for stocks.
The index also managed to break through the psychologically important 1500 mark, which is another positive sign over the short-term.
Over the medium-term, market breadth indicates that the situation has moved from very oversold to oversold. Yesterday’s close shows the percentage of S&P 500 stocks above their 50-day moving average is 41%, which is still well below its 3-year mean of 59%. This indicates the presence of low-risk buying points over the next few weeks.