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Stock market breadth is a tally of how many stocks rose in value versus how many stocks declined in value. Unlike the Dow Jones Industrial Average, which follows just 30 stocks, stock market breadth is a more inclusive ratio, taking almost all stocks traded on an exchange into account. Rather than concentrating on just a few key stocks, stock market breadth gives an investor a much larger overview of the market's overall trend. If more issues close higher today than yesterday, then stock market breadth is said to be positive. If more issues close lower, then stock market breadth is considered to be negative. Stock market breadth is often a key component of the technical analyst's arsenal of market indicators. |
