Market Breadth
A measure of how many stocks are participating in a market move, used to assess the health and sustainability of a trend.
Explained Simply
Market breadth looks beyond headline index performance to see whether the broader market is confirming or diverging from the trend. Common breadth indicators include the advance/decline ratio (how many stocks are rising vs. falling), the percentage of stocks above their 200-day moving average, and the McClellan Oscillator. When the S&P 500 makes new highs but fewer stocks are participating (narrowing breadth), it signals a fragile rally driven by a handful of large-cap stocks — a classic warning sign of an impending reversal. Strong breadth — where many stocks across sectors are advancing together — confirms a healthy, sustainable trend. Breadth divergences often precede market turning points by weeks or months.
How Tradewink Uses Market Breadth
Tradewink monitors market breadth indicators as part of its regime detection system. The AI tracks the advance/decline line, percentage of stocks above key moving averages, and new highs vs. new lows. When breadth diverges negatively from index performance, the system reduces overall exposure and shifts toward defensive strategies. Breadth readings are included in the AI's market briefings that users receive at market open and close.
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See Market Breadth in action
Tradewink uses market breadth as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.