A quick weekly view into the equity markets breadth as depicted by my “old” universe which does not include any Preferred stocks, ETFs or CEFs (closed end funds). I added “old” to the title this week because I have been working on a more complete universe for a new breadth and relative strength product I will be introducing.
I have long believed the market breadth is another way to measure relative strength on a macro basis which is where most stop since every free charting software doesn’t have it in a one button indicator. It has fallen off many radars over the last decade which I think might make it even more valuable going forward. I am excited about the potential advantages this research can provide for the slow (and intermediate) money investors by monitoring the breadth on various levels of the market to get a good idea where money is flowing too and from at any given time as well as when it is outright leaving the party. Send me an email at firstname.lastname@example.org if you would like to be added to the email list to receive details as I get closer to the launch date.
Also check out the Moving Average Breadth post for sector breakdowns
Weekly RSI Chart
Daily RSI Chart
Advanced Decline Line
Moving Average Breadth
McClellan Summation & Oscillator
Breadth Thrust Indicator
I included The New High – New Lows Differential chart again this week for review.
This analysis is powerful for broad market top and bottom calls. Chris Perruna goes into great lengths explaining its power on his website here and a few other articles. We found that by adding it to my “cleaner data” it can substantially improve the signals. This will be one key component to the new service. Who doesn’t want an early warning radar for market tops and bottoms?
Good Luck! It is there for you to make.