Understanding Market Breadth
Learn breadth indicators and how to apply them.
Breadth measures participation across stocks and sectors, offering durability signals for trends.
Key Insights
Point 1
Important
Advance/decline lines reveal participation
Point 2
Important
Percent-above-MA shows structural health
Point 3
Important
Breadth thrusts often precede durable moves
Practical Applications
1
Look for alignment across indices (SPX, NDX, RUT)
2
Confirm breakouts with rising participation
3
Reduce risk when rallies are narrow and fading
Related Market Indicators
Financial Glossary
Market Capitalization
Total value of company's outstanding shares
Fundamental AnalysisPrice to Earnings Ratio
Valuation metric comparing price to earnings
Fundamental AnalysisDividend Yield
Annual dividend as percentage of stock price
Income InvestingBeta Coefficient
Measure of stock volatility relative to market
Risk ManagementBull Market
Sustained period of rising stock prices
Market Cycles