The indicator moves between 0% and 100%. A cross above 50% shows that most stocks in the index are now in medium-term uptrends, and a cross below 50% shows that most are in downtrends. The 100-day version reacts faster than the 200-day one but is steadier than the 50-day one, so it suits swing and position traders. Divergences are worth watching as well: when an index makes a new high but fewer stocks trade above their 100-day moving average, the rally is narrowing.
The charts above show the % of stocks above the 100-day moving average under the price of 24 stock indexes, from the S&P 500, Nasdaq 100 and Russell 2000 to the FTSE 100, DAX and Nifty 50, so you can compare breadth across markets at a glance. Click a chart to open a larger version.
Related stock screens: Price Crossed Above MA(200) Stocks, New 26-Week High Stocks and New 26-Week Low Stocks. You can also use market breadth as a filter in your own screens and strategies in the Formula Screener and the Strategy Backtester.
It is a market breadth indicator that shows the share of stocks in an index trading above their own 100-day simple moving average. It measures how broad the medium-term trend is.
For each stock in the index, the close is compared with its 100-day moving average. The number of stocks above the average is divided by the number of stocks in the index and multiplied by 100.
Readings above 50% mean most stocks are in medium-term uptrends. Readings above 70% to 80% show broad strength but can also mean the market is overbought, while readings below 20% to 30% point to an oversold market.
The 100-day version sits between the two: it turns earlier than the 200-day version and gives fewer false signals than the 50-day one. When all three rise together, the advance has broad support.
Yes. In the Formula Screener, a100ma is this indicator. For example, (a100ma > 50)@sp500 and price ca sma(50) finds stocks crossing above their 50-day SMA while most S&P 500 stocks are above their 100-day SMA. The same condition works as a market filter in the Strategy Backtester.
