The S&P 500 (SPX) has shown a strong recovery, rising nearly 5.5% over the past week, following a bottom of approximately 5,773. This upward trend is supported by improving market breadth, with 60% of S&P 500 stocks now trading above their 200-day moving average, the highest level in over a month. Additionally, there has been a notable six-day streak where more than 68% of S&P 500 components have recorded gains, marking the longest such streak on record. The market's positive momentum is attributed to optimism surrounding a potential call between former President Donald Trump and Chinese President Xi Jinping, which has bolstered sentiment for China-exposed stocks. Analysts are also observing the implications of yields and the performance of various sectors, including multinationals like Microsoft (MSFT). As the new administration takes office, there are expectations for potential rate relief, further influencing market dynamics.