Rallies Warrant Breadth Tests

New highs again, but this time from the cyclical companies. What an amazing breadth we have to this market.

In the old days when we had rallies we would always ask, "Is the breadth good?" Nobody seems to ask that anymore and it is a shame because it is the true test of a rally.

Remember that horrid rally in May where a few stocks -- the ones running today -- led us up? It had such bad breadth you knew that it was unsustainable.

This time there have been whole groups that have taken turns driving up the Dow. We have seen the telcos move it up, then the retailers, and when the retailers falter (thanks Wal-Mart (WMT - commentary - Cramer's Take)) the financials pick up the charge, they rest and then techs, and not the cyclicals, join in.

Not all rallies should be celebrated. This is the exception.

It's terrific, and it isn't quitting yet.

At the time of publication, Cramer had no positions in stock mentioned.

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