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!
Skrip sumber terbuka
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Penafian
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Skrip sumber terbuka
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Penafian
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.