Market breadth

Whether gains are spread across many companies or concentrated in a few giants. Compares the equal-weight S&P 500 (RSP), where every company counts the same, with the normal index.

Formula

Reading = 20-day return of equal-weight S&P 500 − 20-day return of S&P 500 · Score = percentile of today's reading among the last 252 trading days

Worked example

1. Today's reading: −1.40% equal-weight minus S&P 500 (20 days)
2. Compare it with every daily reading over the past year (252 trading days).
3. Today's reading is higher than 30% of the past year's readings.

Result: 30 / 100 · fear

How to read it

Equal-weight ahead = broad, healthy rally (greed). Behind = only a handful of big names holding the market up (fear).

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