Basics of Market Breadth: This Won't Hurt a Bit

If you are a pulmonologist and a subscriber to Real Money or the other products at TheStreet, I apologize. We are not talking about the market breathing, but rather the number of securities rising or falling on any given day. Stocks, commodities, bonds or whatever is being traded can do one of three things: close higher than the previous session, lower or unchanged. Pretty basic stuff.

A stock that closes higher is an advancing issue and a stock that closes lower is a declining issue. Advancing and declining data are called the breadth of the market. A market has good breadth when we see more advancing stocks than declining stocks. There are some 3,000-plus stocks listed on the Big Board across the street from our offices in New York, and this can give you a better representation of "the broad market" than just 30 well-known companies....626 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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