There has been a lot of recent buzz about the breadth of the recent rally; the popular McClellan Oscillator was the highest in 7 years. Yes, there has been big buying in the small caps with the Russell vehicles RTY / IWM / TF futs rallying all the way from YS2 to above YS1 (ps, if you haven't seen already, the YS2 was the low of the year, along with INDU YS1, CL / oil YS1, and HYG YS1). So the USA market is definitely in a stronger position with RTY / IWM above YS1 / 1HS1 combo 103-104.

And while other breadth tools like advance/decline, advance/decline volume difference, and probably throw in other things you like such as new highs new lows, etc, all looks good here, I am going to sound a cautionary note. NYA and ACWI have not reclaimed any longer term pivots. This is where a rally could stop cold, ie only the leader INDU jumping above, while SPX fractionally above without the "look of support", NDX failing to clear, and the institutional broad indexes stopping right on or below major long term pivot clusters.

While I am more open to a bullish scenario with the USA leader INDU above its YP, if none of the others follow on their cash indexes then that is more likely to fade. Additionally, daily and weekly RSIs are at the highest levels in months if not longer, and perhaps some would say a sign of strength, but the rally more likely spent and the broad indexes are still in a downtrend.

NYA W still enough under its YP & 1HP, while reaching the highest RSI since last May. Perhaps the RSI is constructive, since that is when the market topped out, but still point remains below long term levels.