Investors Intelligence Index Breadth
Classic Market Strength Indicator
10 March 2010 Comment
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No major movement took place in the breadth charts. Most were consolidating their recent advances.
For the FTSE100 %10Week Moving Average, the breadth is up and could touch 92% in the near term. At that point we would be cautious about buying. |
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About Breadth Analysis
The table above shows two important technically-based measures of the strength of the major UK indices. The Investors Intelligence
P&F Trend indicator determines if the indices are displaying uptrend or downtrend characteristics, as defined by patterns of rising lows (an uptrend) or falling highs (a downtrend). These should be viewed as an indicator of the medium-term trend.
Investors Intelligence
bullish% indicators measure the number of constituent stocks
within each index holding uptrends, as defined by II’s point & figure charting methodology. A bull market will typically exhibit either rising or strong breadth statistics, while extreme readings for this indicator suggest overbought/oversold (and thus potentially unsustainable) conditions. To read more about breadth indicators and their applications,
click here.