[isatrader]

This is where I struggle with this.  There must be some correlation between these charts, the market and the index.  Perhaps these indicators fortell what is going to happen, but after a 9 month delay?  But this could be happenstance?  Perhaps these indicators declining whilst the index is rising urges caution?  But what of when they are rising with the index in Stage 4?  I feel that it is good to know what they are doing but I'm not sure of the direct application.

My immediate takeaway from it is that when the % stocks with a Mansfield Relative Strength above the zero line (orange and blue combined) is above the 50% level. i.e. there's more stocks outperforming the index, then it's a period to be more aggressive on the long side, and then when the orange level starts to drop below the 50% level, then it signals to start being less aggressive, i.e.trim laggards, but hold leaders. And then when blue drops below 50%, it's time to tighten stops and be alert for changes of behaviour, signs or weakness etc.

But it is an interesting breadth study. Well done. Definitely worth further investigation. But you might need to compare against more than just the S&P 500, even if just against the equal weight version instead, as the breadth decline correlates strongly with the broader market weakness during 2021 that was clear in NYSE and especially the Russell 2000 for example.