How to make sure that you are not chasing a SPX rally that has no breadth. Well here is the dashboard to look for signals. The idea is to look for market breadth. As the constitution of large cap mag10 names have very high weightage on market cap weighted SP500 index (SPX) . The idea is to look for market breadth to gauge if participants are ready to put money in other issues which is a sign of healthy price action.
Following datapoints (index, etfs, measures) can be studies to look at Market internal health & breadth.
- RSP is the etf for equal weight S&P. Keep an eye t
- IWM is the etf for Russell 2000 index which covers small cap universe
- SP500stocks above 5 day, 20 day, 50day & 200 day moving avergae.
- Put/call ratio by CBOE
- Vix to measure volatility.
- SPMO – Sp500 momentum ETF : this will outperform SP500 during risk-on price action
- VTV – Vangaurd value ETF : this will outperform SPMO during risk-off price action.
- DXY – Dollar index. rising dollar is usually bad for large cap tech names.
- XLV+XLB+XLP+XLE (health, energy, chem, material, staples) are the risk off or value components of the SPX.
- XLC+XLK (tech+ comm) are the growth/momentum/risk-on components of the market.
- Their ratio should give of how the market stands
- rsp/spy to measure breath
click of different tabs to find breadth, internal & momentum indicators
Market breadth dashborad
Market internals dashboard
This dashboard allows one to appreciate risk on/risk off beaviour. TLT, XLP & XLU get bid up mostly in case of market stress.
XLC, XLK, XLF could be used as proxy for momentum behaviour.
S&P500 stocks above 5 day moving avg
Advancing minus Declining issues in US market against S&P
Advancing vs declining volume in US market