Recent data indicates a notable improvement in market breadth for the S&P 500. As of January 28, 2025, 66% of S&P 500 companies are trading above their 200-day moving average, marking the highest level since mid-December. This represents a 15-point increase over the past three weeks. Additionally, 64% of S&P 500 stocks were reported trading above their 200-day moving average, the most substantial breadth improvement since December 13. Despite the S&P 500 index declining by 1.86% on January 27, 66% of its constituents were higher that day. Over the past 10 days, 3,346 stocks in the S&P 500 advanced, averaging 334.6 stocks per day, the best performance since March 31, 2023. This trend has led to speculation that the S&P could replicate its previous performance, which saw a 27% gain over the following 12 months after similar breadth conditions.