The most quoted number in the stock market is the level of the S&P 500 or the Nasdaq, but that single number often tells you very little about what is actually happening beneath the surface. Because the major indices are market-capitalization-weighted, a small number of large companies can drive the index’s movement while the majority of stocks do something entirely different. This is why market breadth — the measurement of how many stocks are participating in a market move — is one of the most important and underappreciated tools for reading the market. Breadth indicators reveal the true health of…
Source: View original article