Index review

My favored index in this rally has been the NYSE. It's still below the Feb 26 peak but yesterday it broke above the recent trading range. However, the advance/decline line made a new high yesterday. There's a divergence here but its too early to say whether good or bad. Alan Shaw from Smith Barney used to say (in the 1990's) that markets led by the troops (NYSE, R1K, etc.)were healthier than markets led by the generals (the Dow, etc.). This market is clearly led by the troops as the average stock is continuing to steadily climb. Of course, we need the big boys to chime in, too, but the indication is a good one at least for now.
Bearish sentiment rose from approx 20% to 30% inthe past month, bullish sentiment dropped by a similar amount. That's also an encouraging sign.