Below are recent precedents of % gains following Breadth contractions. The largest retracement (4.74%) during this rally phase that began at the November low was in late December. The Nov. 2011 – March 2012 rally carried 23%, which would project the present rally to 1658.

To the point of our methodology, the present phase of development continues to be Initiative UP. Barring a dramatic reversal today, further upside is very likely regardless of how high today’s rally carries. I’ll update when the cash market opens after about an hour and we’ll look at how Breadth is shaping up.