Weighted Trend Breadth

Weighted Trend Breadth

Most breadth measures are centered on advancing versus declining issues over some period of time. While useful, what is more useful is to know how many issues are bullish, bearish or sideways. This gives a measure of the trend breadth of a market. If we weight these stocks based on market cap and carry that weighting into trend, the we can derive a weighted measure of trend versus a simple count of trend.

The charts below are for daily and weekly trend breadth weighted by market capitalization. Raw counts can be found here.

When viewed in context of price, one can get a sense of whether a move higher in price is supported by a move higher in bullishly trending stocks - or not. Same on bearishly trending stocks and declining prices. Additionally, we look forward with a "risk of transition" bar chart indicating the cumulative weight of stocks that are at risk of changing trend either up or down.

Last update = 2024-04-24