If Tech Companies Are Beating Earnings, Why Isn't NASDAQ Breadth Improving?

Now, consider these points which I posted yesterday:



This is the chart that originally caught my attention a few weeks ago. It led me to believe we may be in the middle of a turnaround. Notice the following:

-- Prices have increased almost 10% since mid-March

-- Prices are above the shorter SMAs

-- The shorter SMAs are above the longer SMAs

-- All the shorter SMAs (10, 20 and 50) are moving higher.

There is one problem with the rally theory. Market breadth on the NASDAQ stinks:



Market breadth hasn't moved higher with the market, and



The new highs/new low number has been decreasing as well.

Why isn't NASDAQ breadth improving? Fundamentally it should be.