Breadth indicators are powerful market indicators that require very intensive calculations. They help us explain the movements of a stock index by examining the collective behavior of its component stocks. We currently publish 320 breadth indicators that are based on 9 of the stock indices that we track. These are:
- Dow Jones Industrial Average
- S&P 500
- Nasdaq 100
- S&P 100
- S&P 400 MidCap
- S&P 600 SmallCap
- NYSE Composite
- CAC 40
- DAX
We apply the Moving Average, the Relative Strength Index (RSI), and New Highs/Lows to each index component. This is done repeatedly with different parameters, where appropriate, and the results are compiled according to the following criteria:
- The number of stocks that are at new highs (or lows) and their difference (NH-NL)
- The number of stocks that are currently trading above their moving average
- The number of stocks with RSI above 70 (the price has risen rapidly)
- The number of stocks with RSI below 30 (the price has declined rapidly)
- The average value of the RSI for all stocks
All our breadth indicators are available for the last 3 years to show past performance. We maintain short and longer term versions of these indicators to suit different trading strategies.
