Breadth Broadens, New Highs Expand; Selective Mid-Cap Longs, Defensives at Risk
IMGELD Market Breadth Update Based on Last 5 Days Till the Data: 2026-01-14
Executive Summary
Breadth improved over the last five sessions. NYSI (McClellan Summation Index) advanced from 287.82 to 402.56, while NYAD (Advance-Decline Line) printed four positive days out of five but decelerated into +189 today. Leadership expanded as NYHGH (NYSE New 52-Week Highs) rose from 137 to 237 and NYLOW (NYSE New 52-Week Lows) stayed suppressed, ticking up only to 28. Volatility stayed contained with a late uptick in VIX (CBOE Volatility Index) to 15.98 and RVX (Russell Volatility Index) to 20.22.
Tactically, long opportunities are emerging selectively in mid-cap industries showing persistent new-high expansion and constructive participation. Short opportunities remain valid in large-cap defensives where distribution persists, particularly if the late volatility uptick extends.
Global Read
Participation is firmly broadening: rising NYSI, four positive NYAD prints, higher new highs, and contained new lows. Leadership is broadening rather than concentrating, with new-high expansion suggesting rotation into a wider set of winners. Volatility remains low but is beginning to expand at the margin, warranting added selectivity. A mild divergence appears as NYSI continues to trend up while NYAD loses momentum on the latest day. The five-day pattern signals early accumulation with a tentative bias, contingent on whether volatility expansion fades or accelerates.
Indicator Breakdown
NYSI (McClellan Summation Index) Structure is improving. The index climbed consistently to 402.56, indicating intermediate-term breadth thrust and supportive underpinnings for further upside if participation holds.
NYAD (Advance-Decline Line) Daily participation strengthened mid-period (+1042, +753, +753) but faded into +189, implying buyers remain in control yet are becoming more selective. Watch for confirmation via a renewed push higher or a rollover.
NYHGH (NYSE New 52-Week Highs) Leadership expansion is intact, rising from 137 to 237. This supports the case for continued accumulation in outperforming mid-cap industries.
NYLOW (NYSE New 52-Week Lows) Downside pressure remains muted, with lows compressed in the low 20s and a modest uptick to 28. Risk appetite is still healthy provided lows do not trend higher.
Volatility Regime VIX hovered in the mid-teens before a late rise to 15.98; RVX mirrored the move to 20.22. The regime remains low, but the late-session expansion argues for disciplined entries and risk controls.
Tactical Take
Long: Favor selective mid-cap industries with persistent breadth and leadership, such as software, semiconductors, and capital goods where new-high participation is firm.
Short: Large-cap defensives remain candidates where relative weakness and distribution persist, including consumer staples, utilities, and legacy telecom, particularly if volatility continues to firm.
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