Compare cap weight with equal weight
SPX and QQQ can be driven by their largest members. Compare equal-weight performance and sector participation to see whether the average stock confirms the index move.
THE MARKET UNDER THE INDEX
Market Breadth: Is the Rally Actually Broad?
An index can rise while many stocks fall because the largest companies carry the most weight. Breadth measures participation beneath the headline and helps distinguish broad demand from concentrated leadership.
Read the complete market breadth guideUse several breadth measures
Advance-decline data, percentage above key moving averages, new highs versus new lows and sector leadership describe different parts of participation. No single reading should carry the entire thesis.
Breadth is a condition, not a timer
Weak breadth can persist while an index continues higher, and washed-out breadth can become more extreme before a reversal. Use it to calibrate confidence and confirmation rather than force an immediate trade.
Frequently asked questions
What is Market Breadth?
An index can rise while many stocks fall because the largest companies carry the most weight. Breadth measures participation beneath the headline and helps distinguish broad demand from concentrated leadership.
Does HPT guarantee a market outcome?
No. HPT publishes general education and conditional market analysis. A level, pattern, indicator or positioning estimate can fail, and trading can produce substantial losses.
Where should a beginner start?
Start with the free HPT Academy learning path, practice the mechanics, and define risk and invalidation before considering any live trade.