Range breakout

Market had established a wide range for couple of month. On Friday the range was broken to the upside. More follow through for next couple of days will confirm the breakout.

The breadth has improved in recent week. The  Worden T2108 indicator that tracks % of stocks above 40 day simple moving average is now at 71.56. Zones above 80 are extremely bullish zones.

Range bound action was characterized by sector rotation. That continues to be the theme.