How I like to use the Market Health Dashboard

Please remember this is just how I use this, its a contextual tool to help investors and traders make more informed decisions.

Step 1 — Set aggression with the Regime

• Buyers in Control → normal/aggressive sizing

• Defensive or Choppy → half size, quicker profit-taking

• Sanity check: QQQ/IWM vs SPY. If both lag SPY, conditions are defensive even if headlines are green.

QQQ= Big tech
SPY= Blue chips
IWM= speculative growth (smaller companies)

Step 2 — Check Live Breadth (Four Gauges)

Real-time snapshot of participation across four time horizons and how I personally interpret them.

Today (Day-of): % of S&P 500 stocks trading green

• 60%+ = broad market (moves have follow-through)

• <45% = narrow/distribution (don't chase)

• "Stocks Positive Today" count provides the raw number

10-Day: % above 10-day moving average (short-term momentum, 1–3 sessions)

• Rising toward 55–60% = improving tape

• Falling toward 45% = pressure building

20-Day: % above 20-day moving average (swing momentum)

• 60%+ = supportive backdrop for swings

• <40% = weak backdrop

200-Day: % above 200-day moving average (structural health)

• 60%+ = healthier foundation; dips tend to buy better

• <50% = caution; rallies fade faster

Step 3 — I Use Historical Breadth (Bottom Chart) for Relative Timing

End-of-day context with oversold/extended reference zones:

Key thresholds:

• Both 10-Day AND 20-Day below 25% = oversold bounce window (typically with 2–7 trading days)

• Both above 80% = extended; trim positions (mean reversion risk rising)

How I use:

• Toggle timeframes (1W, 1M, 3M, 6M, YTD) to see pattern context

• Focus on 10-Day and 20-Day lines

• Chart shows end-of-day values; intraday moves appear in Step 2 gauges

• If 200 average is below 30% we are in a dire market and I’m full hedged

Quick framework:

• Step 1 = Regime (controls position sizing)

• Step 2 = Current breadth snapshot (real-time assessment)

• Step 3 = Historical context + timing zones (entry/exit triggers)

-John