S&P 500 Index High-Low Breadth Index calculated as average of stocks' locations values in relation to their 52-week lows and their 52-week highs. High-Low Breadth Index oscillates from 0 (zero) to 100%. The closer to 100% the High-Low Breadth Index readings are - the more stocks from the S&P 500 Index basked are traded at their 52-week highs. Low (closer to 0%) High-Low Breadth Index readings suggest more S&P 500 Index's stocks traded closer to their 52-week lows. More...
High-Low stocks location graph shows where the majority of stocks are traded in relation to their 52-week highs and their 52-week lows. Distance between 52-week low and 52-week high split in % ranges from 0% (52-week low) to 100% (52-week high) and a number in a row represents the number of stocks traded in a specified range.
High-Low Breadth Index could be applied to basket of stocks only (indexes and Exchanges). It is based on the 52-week Highs and 52-week Lows. This indicator could be considered as an extension of New High and New Lows (show the number of stocks hitting new 52-week highs and new 52-week lows) which helps to take a look insight by revealing where the majority of stocks are traded. This indicator is also a summary of High-Low Range Charts.
High-Low Breadth Index formula is simple. First, close location value (CLV) has to be calculated for each stock. CLV is calculated in relation to 52-week high and 52 week low. The High-Low Breadth Index would be an average of these CLVs:
CLV = (52-week High - Close Price) / (52-week High - 52-week Low) * 100
HL Breadth = Average of CLVs
High-Low Breadth index oscillates around 50% in the range from 0 to 100%. Higher index's readings would tell us that majority of stocks are traded closer to their 52-week highs - majority of stocks are bullish. The closer to 100% index's readiness are the closer to their 52 weeks highs stocks are and the more bullish sentiment is. Controversially, low Breadth index readings reveal that the majority of stocks are traded down closer to their 52-week lows. The closer to 0 (zero) these readings are the stronger bearish sentiment is (stocks are closer to their 52-wekk lows).