Market Momentum is an overview of the stock market. Market Momentum highlights major market indices and market rates, and also displays a market momentum summary box.
There are four major sections on the Market Momentum page:
- Daily Stock Activity by Exchange
- Market Performance Indicator with Market Averages
- Major Market Movement
- Recent Indicator Activity
Daily Stock Activity by Exchange
This section lists the number of stocks that have advanced and declined for the day with the volume of shares traded, as well as the number of new 52-week high and low stocks for each of the exchanges. The numbers include all active stocks for that day. For U.S. Markets, only NYSE and NASDAQ stocks are included, excluding ETF's. NYSE and NASDAQ stocks also exclude unit investment trusts, closed end funds, warrant stocks, preferred securities and any non-SIC classified stock. For Canadian Markets, only TSX and TSX-V stocks are included.
Market Performance Indicator
Barchart calculates a custom index (the Barchart Market Momentum Index) which is used as an indicator of overall change in the markets. The index reflects the movement of more established stocks: those with SEC filings, with 6 months of trading activity, and with price above $2.00. A high value means the market is moving up, where as a negative value implies the market is down today.
The formula for the Barchart Market Momentum Index is:
- 1) Calculate (price/previous - 1.0) for each split adjusted stock
- 2) Accumulate the result from step 1) for the participating stocks
- 3) Multiply the total in 2) by 100.0 and divide the number of participating stocks
The result is the current Barchart Market Momentum Index expressed as a percentage.