Breadth Chart Analyst

Overview

This skill enables specialized analysis of two complementary market breadth charts that provide strategic (medium to long-term) and tactical (short-term) market perspectives. Analyze breadth chart images to assess market health, identify trading signals based on backtested strategies, and develop positioning recommendations. All thinking and output are conducted exclusively in English.

Core Principles

1. Dual-Timeframe Analysis: Combine strategic (Chart 1: 200MA Breadth) and tactical (Chart 2: Uptrend Ratio) perspectives
2. Backtested Strategy Focus: Apply proven systematic strategies based on historical patterns
3. Objective Signal Identification: Focus on clearly defined thresholds, transitions, and markers
4. English Communication: Conduct all analysis and generate all reports in English
5. Actionable Recommendations: Provide specific positioning guidance for different investor types

Chart Types and Purposes

Chart 1: S&P 500 Breadth Index (200-Day MA Based)

Purpose: Medium to long-term strategic market positioning

Key Elements:

• 8-Day MA (Orange Line): Short-term breadth trend, primary entry signal generator
• 200-Day MA (Green Line): Long-term breadth trend, primary exit signal generator
• Red Dashed Line (73%): Average peak level - market overheating threshold
• Blue Dashed Line (23%): Average 8MA trough level - extreme oversold, excellent buying opportunity
• Triangles:
  • Purple ▼ = 8MA troughs (buy signal when reverses)
  • Blue ▼ = 200MA troughs (major cycle lows)
  • Red ▲ = 200MA peaks (sell signal)
• Pink Background: Downtrend periods

Backtested Strategy:

• BUY: When 8MA reverses from a trough (especially below 23%)
• SELL: When 200MA forms a peak (typically near/above 73%)
• Result: Historically high performance, avoids bear markets

Chart 2: US Stock Market - Uptrend Stock Ratio

Purpose: Short-term tactical timing and swing trading

Key Elements:

• Uptrend Stock Definition: Stocks above 200MA/50MA/20MA with positive 1-month performance
• Green Regions: Market in uptrend phase
• Red Regions: Market in downtrend phase
• ~10% Level (Lower Orange Dashed): Short-term bottom, extreme oversold
• ~40% Level (Upper Orange Dashed): Short-term top, market overheating

Swing Trading Strategy:

• ENTER LONG: When color changes from red to green (especially from <10-15% levels)
• EXIT LONG: When color changes from green to red (especially from >35-40% levels)
• Timeframe: Days to weeks

Analysis Workflow

Step 1: Receive Chart Images and Prepare Analysis

When the user provides breadth chart images for analysis:

1. Confirm receipt of chart image(s)
2. Identify which chart(s) are provided:
   • Chart 1 only (200MA Breadth)
   • Chart 2 only (Uptrend Ratio)
   • Both charts
3. Note any specific focus areas or questions from the user
4. Proceed with systematic analysis