Stock Performance and Market Breadth

To successfully trade stocks, or the major indices, one must consider three things: technical analysis, fundamental analysis and market breadth. 

The focus of this blog is strictly market breadth.

Whether the indices move up, down or sideways, they always go through overbought/oversold cycles. Because of indexing and passive fund management, individual stock moves are strongly correlated with the broader indices. Therefore, being able to determine whether the broader market is overbought or oversold should go a long way in helping you time your trades.

The use and meaning of the gauges, which are updating live during the trading day, is explained in the User Guide.

The charts below represent a selection of market breadth readings in a historical context.

Daily NYSE and NASDAQ market breadth (updated 10/21/16:

Weekly %Bulls and the SP500: