Are you saying that breadth is an important indicator for the stock market? You may have discovered something here.Below you may see the High-Low range NYSE and S&P 500 index charts.
Chart #1: High-Low Range 50% NYSE chart from February until November 2015: red line is the # of Bearish stocks which are traded closer to their 52 week lows and green line is the # of bullish stocks which are traded closer to their 52-week highs.
Chart #2: High-Low Range 50% S&P 500 chart for the period from February until November of 2015.
charts from http://www.marketvolume.com/quotes/highlowrangechart.asp
The number of the bearish stocks comprising the NYSE Composite index was bigger than the number of bullish stocks in May of 2015 (see the chart #1). I have mentioned in several trading forums - this is not a good sign for the market (http://www.city-data.com/forum/investing/2415542-time-start-dumping.html) - nobody cared then and in a week after nobody remembered.
By comparing the NYSE and the S&P 500 charts, we may say that the bigger part of the NYSE stocks became bearish in May-June of 2015. The majority of the S&P 500 stocks was still Bullish at that time. This mean the smaller companies went into the decline in May 2015 while bigger companies (like AAPL) were still Bullish. However, the market cannot stay bullish just because big companies are. In August of 2015, the market giants started to decline as well and the market suddenly crashed.
Today, the number of bearish stocks topped the number of bullish stocks on the S&P 500 again (see chart #2 above). While we see the majority of stocks declining, we cannot talk about the Bull market.
The situation could be different tomorrow and we will see it tomorrow. However, at this point of time, I would say the odds are higher for a correction than for the Bull market.
High-Low Range Charts - Market Breadth Analysis
- Thread starter viktor_k67
- Start date
The markets most discussed market breadth index is usually the VIX follow by the AD Lines and then the Put/Call ratio then followed by the TRIN. So yes, market breadth indexes are well followed.
Note: I saw a survey once a few years back in a financial magazine that listed in order the most discussed market breadth indexes and this High Low Range charts was not on the list and its rarely mentioned at any other location online.
This High Low Range charts must be proprietary index charts, very interesting and more interesting if there's available intraday charts. I would like to compare the intraday charts of High Low Range to the market breadth New Highs New Lows intraday charts to see if it provides better information to help with day trading.
Note: I saw a survey once a few years back in a financial magazine that listed in order the most discussed market breadth indexes and this High Low Range charts was not on the list and its rarely mentioned at any other location online.
This High Low Range charts must be proprietary index charts, very interesting and more interesting if there's available intraday charts. I would like to compare the intraday charts of High Low Range to the market breadth New Highs New Lows intraday charts to see if it provides better information to help with day trading.
This is correct. So instead of counts over and under 50%, I want the average of the percentage for a portfolio.
I am sorry, I have only daily charts at this moment. In case of going into intraday time-frames, I belie we should not push from 52-week lows and 52-weeks highs as we may have some delay unaceptabe for intraday traders. Something like 5-day (1-week) lows and highs for 1-minute charts could be OK, yet, I did not test it.
I got you, instead of seeing 400 bearish and 100 bullish stocks on S&P 500 you would prefer seeing 80% bearish and 20% bullish.
Since an index price is directly calculated from the price of the stocks listed in this index, Breadth analysis or summary analysis of stocks listed in this index should help. You may manually analyse each of 30 DOW stocks, but you cannot go through 2000 NYSE Composite or Russell 2000 stocks manually and Breadth analysis may help you here.
No, you still don't understand. I would want to see the average % and it would be a number like 60.562%. That would indicate that collectively all of my stocks have an average % of that figure. I would compare that to the index. Both calcs use a weighted average based on $ allocation. In the case of most indices, they are already price-weighted.
So, lets say a 1st stock is traded 20% from its 52-week low, 2nd stock is trade 25% from its 52-week low and etc. The average would be (20+25+...)/(number of stocks).
Is that what you are looking for?
Is that what you are looking for?
I guess, then you are looking for something like
http://www.marketvolume.com/quotes/breadthindexhighlowchart.asp?s=DJI
with exception that it does not use weighting coefficient... For other indexes change the DJI in the URL address to SPX, RUT, NYE and etc.
http://www.marketvolume.com/quotes/breadthindexhighlowchart.asp?s=DJI
with exception that it does not use weighting coefficient... For other indexes change the DJI in the URL address to SPX, RUT, NYE and etc.