breadth-chart-analyst

What it does

The skill analyzes two market breadth charts to provide strategic and tactical perspectives: Chart 1 (S&P 500 Breadth Index based on the 200-Day MA) and Chart 2 (US Stock Market Uptrend Ratio). It uses a dual-timeframe, backtested-strategy framework to identify clear buy/sell signals, assess market regime, and generate actionable positioning guidance for different investor types.

How it works

• It expects user-provided breadth chart images and guides the user through identifying which charts are present.
• It instructs loading the breadth chart methodology from a specified reference and examining sample charts to understand visuals and markers.
• For Chart 1 analysis, it requires extracting current readings (8MA and 200MA levels, slopes, distances to 73% and 23% thresholds, and most recent date) and performing a detailed, step-by-step recent-data-point review (rightmost 3–5 weeks) to determine the 8MA and 200MA trends, potential troughs/peaks, and whether a reversal pattern constitutes a valid signal. It includes checking for a trough, confirmation of 2–3 upward periods, and monitoring for a failed reversal.
• It documents signal markers (latest troughs/peaks, durations, pink backgrounds) and classifies the current regime (e.g., Healthy Bull Market, Overheated, Bear Market).
• It applies backtested rules to determine BUY or SELL signals, with explicit criteria for CONFIRMED, DEVELOPING, FAILED, or NO SIGNAL, and outlines position statuses (Long, Preparing to Enter, WAIT/Flat, Preparing to Exit).
• For Chart 2 analysis, it requires current uptrend ratio readings, color, slope, and threshold distances; identifies trend transitions; classifies market condition (e.g., Extreme Oversold, Extreme Overbought); and determines trading positions (Enter Long, Exit Long) based on color transitions and overshoot/overbought thresholds.
• When both charts are provided, it performs a Combined Analysis with alignment assessment, scenario classification (four scenarios), and a unified recommendation across long-term, swing, and active traders.
• It requires generating a markdown analysis report per the provided templates and saving with the specified filename conventions.
• All analysis is conducted in English and the final output adheres to the stated quality checks (language, latest data trend, trend direction accuracy, failed reversal verification, specific values, explicit signal status, strategy alignment, probability sums, actionable guidance, historical context, and risk factors).

When to use it

• When the user provides breadth chart images for analysis.
• When the user requests market breadth assessment.
• When the user seeks positioning strategy recommendations.
• When the user wants understanding of medium-term strategic and short-term tactical market outlook based on breadth indicators.

What it can touch

• Tools: claude-code
• Files mentioned in workflow: Read: references/breadth_chart_methodology.md, View: assets/SP500_Breadth_Index_200MA_8MA.jpeg, View: assets/US_Stock_Market_Uptrend_Ratio.jpeg, Read and use template: assets/breadth_analysis_template.md

Caveats

• All analysis assumes the availability and legibility of chart images provided by the user.
• The instructions emphasize strict, step-by-step evaluation of recent data points (rightmost 3–5 weeks) for 8MA and 200MA trajectories and do not allow speculative extrapolation beyond explicit chart-based readings.
• Outcomes are limited to the signals and classifications defined (CONFIRMED BUY, DEVELOPING, FAILED, WAIT, SELL, etc.) and do not guarantee future performance.
• All content is in English.