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Market Breadth
The Menthor Q Market Breadth tracks the percentage of S&P 500 stocks trading above their 200-day moving averages, signaling overall market health and direction. A high proportion above this average indicates widespread bullish sentiment, while fewer stocks above it may suggest underlying market weakness. This indicator helps investors assess whether market movements are broad-based or driven by a few stocks, providing early warnings of potential trend reversals or corrections.
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Trend Bias
The Trend Bias Indicator evaluates a subset of moving averages to identify bullish crosses (fast MA > slow MA). This data generates a trend model, shown as an oscillator indicating the likely trend. The graph’s upper part highlights past trends: green for probable bullish and red for likely bearish trends.
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Super Trend
The Supertrend indicator, a trend-following overlay similar to moving averages, uses ATR and a multiplier to determine trend direction. It tracks the number of S&P 500 stocks in a Super Trend Buy Signal mode. -
RSI & Bollinger Bands
The Menthor Q RSI and Bollinger Bands Indicator is presented in a 4-chart format:
- First Pane: Shows the S&P 500 Index.
- Second Pane: Displays the number of stocks with a 5-day RSI above 70 (overbought condition).
- Third Pane: Displays the number of stocks with a 14-day RSI above 70 (overbought condition).
- Fourth Pane: Shows the number of stocks trading above their upper Bollinger Band.
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Moving Averages
Similar to Market Breadth for the 200-day moving average, this indicator uses shorter-term averages and is displayed in a 4-pane chart:
- Price of the Asset
- Number of Stocks above the 5D SMA
- Number of Stocks above the 20D SMA
- Number of Stocks above the 50D SMA
Reading the Indicator:
- Many stocks above their short-term MAs (like 20D or 50D) suggest broad market strength and positive momentum.
- Few stocks above their short-term MAs indicate market weakness or bearish momentum.
- Significant changes in these numbers can signal trend reversals; for example, many stocks rising above their short-term MAs after a bear market can suggest a bullish reversal.
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MACD
The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA. The result of that calculation is the MACD line. A nine-day EMA of the MACD called the “signal line,” is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
