Breadth Broadens, Volatility Eases: Early Accumulation Favors Selective Mid-Cap Longs
IMGELD Market Breadth Update Based on Last 5 Days Till the Data: 2026-01-24
Executive Summary Date: 2026-01-23
Breadth improved over the last five sessions. NYSI (McClellan Summation Index) advanced and stabilised at elevated levels, NYAD (Advance–Decline Line) turned positive for three straight days, NYHGH (New 52-Week Highs) accelerated, and NYLOW (New 52-Week Lows) compressed. VIX (CBOE Volatility Index) and RVX (Russell Volatility Index) retraced a midweek spike back toward subdued regimes. Tactical bias is tentative, long with strict selectivity. Long opportunities may be emerging within mid-cap industries showing sustained new-high creation and persistent positive A/D. Large-cap short setups remain tactical only, focused on overextended names if breadth stalls and volatility re-expands.
Global Read
Participation is broadening as advances outpaced declines across the final three sessions and new highs expanded. Leadership is rotating from narrow, index-heavy leadership toward more inclusive participation, evidenced by the surge in NYHGH and the decline in NYLOW. Volatility is compressing after a brief shock, supportive of risk-taking but vulnerable to abrupt reversals. NYSI’s upturn and NYAD’s late-week strength show no adverse divergence; NYAD’s earlier weakness was resolved higher while NYSI continued to firm. The five-day pattern signals early accumulation. By the five-day consistency rule, signals remain constructive but not fully confirmed.
Indicator Breakdown
1. NYSI (McClellan Summation Index)
Structure is improving: 519.74 → 516.28 → 539.67 → 569.22 → 569.22. The rise and subsequent plateau indicate renewed demand with no immediate deterioration.
2. NYAD (Advance–Decline Line)
Participation strengthened late: -351, -1,560, +1,597, +679, +679. Three consecutive positive prints underline improving breadth, offsetting early-week weakness.
3. NYHGH (New 52-Week Highs)
Leadership is expanding: 181 → 110 → 250 → 302 → 302. Sustained readings above 300 suggest more industries are contributing to upside momentum.
4. NYLOW (New 52-Week Lows)
Downside pressure eased: 33 → 61 → 35 → 14 → 14. Persistent suppression of lows supports risk appetite and reduces downside tails.
5. Volatility Regime
VIX moved 15.86 → 20.09 → 16.90 → 15.64 → 15.64; RVX 20.23 → 23.83 → 21.88 → 21.29 → 21.29. The post-spike compression favors carry and trend continuation, but the recent shock underscores sensitivity to headline risk. A volatility re-acceleration would warrant tightening risk and favor only tactical shorts in overextended large caps.
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