According to The Kobeissi Letter, market breadth showed significant improvement on Monday even though the S&P 500 experienced a sell-off. 66% of companies in the S&P 500 are now trading above their 200-day moving average, marking the highest level since mid-December. This represents a 15-point increase over the past three weeks. Additionally, 61% of the S&P 500 firms are above their 50-day moving average, up from just 17% three weeks ago. Despite a -1.5% drop in the S&P 500 driven by big tech, 351 stocks managed to close higher, indicating a healthier market condition.