US equity market breadth is rapidly improving: The proportion of S&P 500 stocks trading above their 50-day moving average surged +5 percentage points on Friday, to 61%, the highest reading since mid-August. Since the October 1st intraday low, this figure has more than tripled. Additionally, the proportion of S&P 500 stocks trading above their 200-day moving average rose +3 percentage points on Friday, to 57%, the most since September 9th. Over the last 3 weeks, this figure has risen +17 percentage points. This comes despite the S&P 500 remaining roughly unchanged over the same period. This also ranks among the 3 sharpest improvements in market breadth over the last 3 years. On Thursday alone, 335 S&P 500 stocks finished higher, despite the index declining -1.2% on that day. The market is strengthening beneath the surface.