Market breadth
The distribution of advancing and declining securities showing how widely a market move is shared.
Plain languagePractical exampleConnected reading
01
What is it?
The distribution of advancing and declining securities showing how widely a market move is shared.
02
Why does it matter?
It helps distinguish a move led by a few heavyweights from broad participation.
03
How should it be read?
Read advances versus declines, new highs and lows, sector participation and volume together.
04
Common mistake
Assuming most stocks are rising whenever the index is up.
A simple example
If the index rises while most stocks fall, leadership may be unusually narrow.