Breadth Broadens, New Highs Surge; Selective Mid-Cap Longs Lead Early Accumulation
IMGELD Market Breadth Update Based on Last 5 Days Till the Data: 2026-01-06
Executive Summary Date: 2026-01-07
Breadth improved into the close of the five-session window. NYSI (McClellan Summation Index) rebounded to 259.16 after a mid-period downtick, signaling an early turn higher. NYAD (Advance–Decline Line) flipped from deeply negative to three consecutive positive readings, indicating firmer participation. VIX (CBOE Volatility Index) stayed anchored in the low teens with a mild uptick, while RVX (Russell Volatility Index) edged higher, preserving a modest small/mid risk premium. Tactically, selective mid-cap long opportunities are emerging in industries showing expanding new highs and sustained positive advance–decline momentum. Large-cap short setups remain valid only in lagging industries where breadth continues to deteriorate.
Global Read
Participation is broadening as NYAD prints three straight positives and NYHGH accelerates, while NYLOW contracts. Leadership is rotating toward areas with improving momentum rather than remaining concentrated. Volatility remains contained overall, with a slight late lift in RVX suggesting some fragility beneath the surface, but not yet disorderly. A short-lived divergence appeared when NYAD turned positive as NYSI dipped; that resolved bullishly with NYSI’s rebound. By the five-day consistency rule, participation is firmly improving (three days positive), while the overall pattern reflects early accumulation rather than a mature continuation. Selectivity remains important given the late uptick in volatility.
Indicator Breakdown
NYSI (McClellan Summation Index) Structure improved: 254.24 to 247.35 mid-period, then a thrust to 259.16. The higher finish versus start indicates constructive momentum, albeit early.
NYAD (Advance–Decline Line) Daily participation strengthened: −1339 for two sessions, then +1000, +1000, and +1050. This is a firm, multi-day improvement consistent with accumulation.
NYHGH (New 52-Week Highs) Leadership expansion is clear: 34, 34, 75, 75, then a surge to 207. Breakout breadth favours industries with sustained leadership rather than single-name spikes.
NYLOW (New 52-Week Lows) Downside pressure eased: 40, 40, 45, 45, then 31. Contracting lows align with improving risk appetite and reducing immediate downside tail risk.
Volatility Regime VIX stayed stable (14.95 to 14.51 back to 14.90), while RVX rose late (19.31 to 19.91). The regime remains calm-to-neutral; a modest uptick argues for disciplined entries and risk controls, especially where leadership is thin.
CTA
Market breadth is only the starting point. Thinking of going long or short without knowing which industries are accelerating or breaking down? Each industry moves in its own rhythm. Stay informed. Unlock the ImGeld Industry Updates — subscribers only.