Broad Breadth Model – Methodology, Indicators, Signals & Performance

SPY, QQQ and XLK are leading the surge as their gap-breakouts hold. The broader market, however, remains mixed as small-caps and mid-caps lag. New highs are starting to appear with cybersecurity, defense and telecom leading the way. We are also seeing relative strength in blockchain and software. Precious metals remain strong with platinum joining the breakout parade. Copper perked up and Bitcoin is trading near new highs.

The broad market environment is mixed, at best, and still bearish at worst. Keep in mind that SPY and QQQ are part of the broad market environment, but they are large-cap driven ETFs that do not always reflect conditions under the surface. Breadth indicators reflect conditions for the average stock. Just over 50% of S&P 500 stocks are above their 150 and 200 day SMAs. This