INDEX REALITY LAB BREADTH DECONSTRUCTOR

Analyzing Market-Cap Weighting Distortion, Mega-Cap Concentration & Underlying Constituent Health

Historical Market Regime Presets
Cap-Weighted Index SPX Model
+24.2%
Headline Nominal Gain
Equal-Weighted Basket RSP Reality
+5.8%
True Average Stock Return
Divergence Spread Concentration Gap
+18.4%
Extreme Index Mirage
Beat Index Ratio % Outperforming
28.4%
71.6% Lagging Composite
Herfindahl Index (HHI) Concentration Risk
248
Top-Heavy Regimes
Cumulative Performance & Cumulative Breadth Trajectory
Cap-Weighted (Headline)
Equal-Weighted (Reality)
Cumulative Net A/D Line
Constituent Return Dispersion Histogram
Top 10 Weight & Return Contribution Waterfall
Constituent Granular Inspection (500 Stocks)
Rank ↕ Ticker ↕ Index Weight ↕ Return (%) ↕ Headline Contribution ↕ Status ↕

Cap vs. Equal Weight Divergence

Cap-weighted indices reflect aggregate shareholder capital value, while equal-weighted indices reflect the health of the average enterprise. Large positive divergence signals an index heavily carried by a handful of mega-caps.

Advance-Decline Breadth Thrusts

Breadth measures how many individual equities participate in an index rally. A rising headline index alongside a falling Advance-Decline line indicates a classic 'bearish breadth divergence' that historically precedes market fragility.

Herfindahl-Hirschman Index (HHI)

HHI calculates the sum of squared weights of all constituent stocks. An HHI above 180 indicates pronounced index concentration, converting a diversified broad index into a de facto concentrated sector fund.

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