OPEN-SOURCE SCRIPT
S&P 500 Sector Breadth — Fixed v6
This indicator measures market breadth by tracking how many of the 11 S&P 500 sector ETFs are trading above their 200-day moving average. Here's how to use it:
What It Shows
The indicator plots a line that ranges from 0 to 11, representing the number of sectors in uptrends:
9-11 sectors above MA = Very strong market (green background)
8+ sectors = Strong bullish breadth - most sectors participating
6 sectors = Neutral - market is mixed
4 sectors = Weak market conditions
0-3 sectors = Very weak market (red background)
How to Interpret
Strong Market (8+ sectors):
Broad participation across sectors
Healthy bull market conditions
Lower risk environment
Good time for long positions
Weak Market (≤3 sectors):
Poor market internals
Most sectors in downtrends
Higher risk environment
Consider defensive positioning or cash
Divergences Matter:
If the S&P 500 makes new highs but breadth is declining (fewer sectors above MA), that's a bearish divergence warning
If the S&P 500 is weak but breadth is improving, that can signal a potential bottom
Settings You Can Adjust
Moving Average Length (default 200): Change to 50 or 100 for different trend definitions
Smooth Breadth Line (default 5): Smooths the indicator to reduce noise; set to 0 for raw data
Show Breadth Label: Toggle the current breadth reading on the chart
Alerts
The indicator includes built-in alerts:
When breadth crosses above 8 (strong participation)
When breadth crosses below 4 (deteriorating conditions)
This is a great confirmation tool to use alongside price action and other indicators!
What It Shows
The indicator plots a line that ranges from 0 to 11, representing the number of sectors in uptrends:
9-11 sectors above MA = Very strong market (green background)
8+ sectors = Strong bullish breadth - most sectors participating
6 sectors = Neutral - market is mixed
4 sectors = Weak market conditions
0-3 sectors = Very weak market (red background)
How to Interpret
Strong Market (8+ sectors):
Broad participation across sectors
Healthy bull market conditions
Lower risk environment
Good time for long positions
Weak Market (≤3 sectors):
Poor market internals
Most sectors in downtrends
Higher risk environment
Consider defensive positioning or cash
Divergences Matter:
If the S&P 500 makes new highs but breadth is declining (fewer sectors above MA), that's a bearish divergence warning
If the S&P 500 is weak but breadth is improving, that can signal a potential bottom
Settings You Can Adjust
Moving Average Length (default 200): Change to 50 or 100 for different trend definitions
Smooth Breadth Line (default 5): Smooths the indicator to reduce noise; set to 0 for raw data
Show Breadth Label: Toggle the current breadth reading on the chart
Alerts
The indicator includes built-in alerts:
When breadth crosses above 8 (strong participation)
When breadth crosses below 4 (deteriorating conditions)
This is a great confirmation tool to use alongside price action and other indicators!
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.