Market Internals:

Breadth:

Market breadth indicators measure market participation. They compare the number of stocks that are advancing to those that are declining.
They look for trends and divergences in cumulative measures and overbought/oversold levels in oscillating measures.
Market breadth is positive when more stocks are advancing compared to those declining in an exchange or an index. This may indicate a bullish market.
Market Breadth is used to find weaknesses that a chart cannot show. However, market breadth indicators may provide timing signals that are considered too early.
Some indicators include the Advance-Decline Line, McClellan Oscillator, SPX % > 50-day MA, SPX % Oversold, SPX % Overbought, New Highs - Lows Index, Up-Volume vs Down-Volume, etc.

Leadership:

Leaderships provide an idea of the “legs” behind a market move. They are useful in confirming rallies and declines.
Some indicators include NYSE New 52-Week Highs and NYSE New 52-Week Lows.

Sentiment:

These indicators attempt to judge and quantify the emotions behind a market move. Sentiment indicators are usually contrarian indicators.
Some indicators include:
- CBOE Volatility index (VIX): Transactional sentiment indicator commonly used as a gauge of complacency
- CNN Fear and Greed Index: Transactional sentiment indicator that incorporates seven inputs, such as the VIX and junk bond demand.
- Investor Polls (Investors Intelligence and American Association of Individual Investors)
- Put/Call Ratios, etc.: Take note of spikes and dips, which show emotional extremes

Volume:

Volume is the total number of shares that are actively traded during a set period of time. It is the measure of a total turnover of shares.
We watch total volume but shy away from evaluating for individual stocks.
Make note of spikes, which are most insightful because they are often found at inflection points on emotionally-charged moves.