Market Breadth Analyzer

Overview

This skill quantifies the health of market breadth using public data from TraderMonty's GitHub repository. It generates a composite score from 0-100 (100 = healthy) across six key components, providing a quick, data-driven assessment of market participation.

Key Features:

• Composite Score (0-100): Single, easy-to-understand metric for breadth health.
• 6-Component Analysis:
  1. % Stocks > 50-day MA
  2. % Stocks > 200-day MA
  3. 1-Month New Highs - New Lows
  4. Advance-Decline Line (ADL) Momentum
  5. % Bullish (AAII Sentiment)
  6. S&P 500 distance from 200-day MA
• No API Key Required: Uses a publicly available CSV, making it free and reliable.
• Historical Context: Compares the current score to its 3-month and 6-month moving averages.

When to Use This Skill

Explicit Triggers:

• "What's the current market breadth?"
• "Is this rally broad-based?"
• "Analyze market participation."
• "Show me the advance-decline health."
• User asks about "market breadth," "A-D line," "% stocks above moving average."

Implicit Triggers:

• User is concerned about a narrow, top-heavy market rally (e.g., led by only a few mega-cap stocks).
• User is assessing the risk of a market downturn, as poor breadth is often a leading indicator.

When NOT to Use:

• For real-time, intraday breadth data (this is end-of-day).
• For individual stock analysis.
• For deep technical analysis of a single indicator (this skill provides a composite view).

Workflow

Step 1: Execute the Analysis Script

The entire process is handled by a single Python script.

# Run the breadth analysis
python3 skills/market-breadth/scripts/breadth_analyzer.py

The script performs the following actions:

1. Downloads Data: Fetches the latest Market-Breadth-Data.csv from TraderMonty's public GitHub repo.
2. Calculates Components: For each of the 6 components, it calculates a normalized score (0-100) based on its current value relative to its 1-year range.
3. Computes Composite Score: A weighted average of the 6 component scores.
   • % > 50d MA: 25%
   • % > 200d MA: 25%
   • NH-NL: 20%
   • ADL Momentum: 15%
   • AAII Bullish: 10% (inverse scoring)
   • SPX distance from 200d MA: 5%
4. Generates Report: Outputs a JSON file and a human-readable Markdown summary.

Step 2: Analyze the Output

The script produces two files:

• breadth_report_YYYY-MM-DD.json
• breadth_report_YYYY-MM-DD.md

JSON Output:

{
  "composite_score": 78.5,
  "assessment": "Healthy",
  "trend": "Improving",
  "components": {
    "stocks_above_50d_ma": 85,
    "stocks_above_200d_ma": 90,
    "new_highs_lows": 75,
    "ad_line_momentum": 60,
    "aaii_bullish_inverse": 70,
    "spx_distance_from_200d_ma": 95
  },
  "moving_averages": {
    "3_month": 65.2,
    "6_month": 58.9
  }
}