market_breadth_health_skill

Market Breadth Health Skill

Data dependencies and execution prerequisites

It is recommended to use Wind wind-mcp-skill to obtain underlying data. Before execution, first check whether wind-mcp-skillis already available locally; if not, prompt the user to install:

# GitHub
npx skills add Wind-Information-Co-Ltd/wind-skills --skill wind-mcp-skill -g -y

# Gitee 镜像（国内）
npx skills add https://gitee.com/wind_info/wind-skills.git --skill wind-mcp-skill -g -y

Skill positioning

This skill is used to judge the participation breadth and upward quality behind index performance, answering whether an index rise is genuinely strong or driven by a few heavyweights, and whether an index decline reflects broad weakening or localized structural adjustment. The output focuses not on restating changes in index levels, but on assessing market health, identifying crowding and divergence, and helping users calibrate risk exposure.

Execution process

Step 1: Confirm the observation target and period

First clarify what this breadth judgment revolves around:

• Which index or type of market is being observed
• Whether it is intraday, the past week, the past month, or a longer period
• Whether the goal is to explain the quality of the current rise or to judge the scope of damage from a decline
• Whether the user is more concerned with short-term participation or medium-term trend robustness

If the user does not specify, default to cross-judging on two scales, the past week and the past month.

Step 2: Establish a breadth observation framework

Market breadth should not be judged only by the number of advancers and decliners; it should be assessed simultaneously from multiple angles:

• Distribution of the number of rising and falling instruments
• Changes in the number of new highs and new lows
• Degree of participation across different market caps, styles, and industries
• Whether leading stocks, heavyweight stocks, and ordinary constituent stocks move in sync
• Whether index performance is consistent with the money-making effect

The goal of this stage is to confirm whether index performance is supported by the broader market.

Step 3: Identify healthy broadening, localized crowding, or weak rebound

Combining breadth data and structural characteristics, classify the market roughly into one of the following types:

• Healthy broadening: most industries and individual stocks improve simultaneously, giving the index rise a foundation
• Structural crowding: a few heavyweights or leaders drive the index, while breadth does not follow
• Weak repair rebound: a brief recovery after a decline, but with limited participation
• Broad weakening: breadth deteriorates before or alongside the index pullback

When classifying, look at both the cross-sectional distribution and temporal continuity, avoiding reliance on a single day's status.

Step 4: Explain the reasons behind breadth changes

Further explain why current breadth is in this state, focusing on:

• Whether the market is broadening broadly under rising risk appetite or crowding into safe havens
• Whether growth, value, cyclical, defensive, and other styles are taking turns providing support
• Whether there are structural disturbances from macro events, policy signals, or earnings report windows
• Whether breadth deterioration stems from the release of crowded high-level positions, chip rotation, or liquidity problems

Step 5: Judge the implications for index trends and positions

Breadth analysis must ultimately return to the actionable level, focusing on answering:

• Whether the current index rise is sustainable
• Even if the index appears stable, whether structural pullback risk still needs to be guarded against
• If breadth improves, which directions should receive increased attention
• If breadth deteriorates, where risk should be controlled first

Step 6: Produce a finished market breadth health check

The final output should help users quickly judge whether the broad market is "strong, stable, and has a money-making effect." The main text should retain only breadth conclusions, structural diagnosis, driver explanations, and risk warnings.

Output Structure

---

{Market/Index Name} Market Breadth Checkup ({YYYY-MM-DD})

I. 30-Second Conclusion

• Index Status: {Strong Uptrend / Range-Bound / Weakening}
• Breadth Status: {Healthy / Average / Weak}
• Market Character: {Broad Diffusion / Localized Grouping / Weak Repair / Broad Weakening}
• Current Alert: {Can Be Actively Tracked / Maintain Screening / Be Cautious About Index Appearance}

II. Breadth Observation Panel

Dimension	Current Performance	Conclusion
Advance/Decline Distribution	{Content}	{Judgment}
New Highs/New Lows	{Content}	{Judgment}
Sector Participation	{Content}	{Judgment}
Synchronization Between Heavyweights and Ordinary Stocks	{Content}	{Judgment}
Money-Making Effect	{Content}	{Judgment}

III. Market Structure Diagnosis

• Whether There Is Grouping: {Content}
• Whether There Is Diffusion: {Content}
• Most Obvious Point of Divergence: {Content}

IV. Driver Explanation

• Main Driver: {Content}
• Auxiliary Factors: {Content}
• Potential Disturbances: {Content}

V. Implications for Trend and Position Sizing

• Judgment on Trend Continuity: {Content}
• Current Main Risks: {Content}
• Operational Focus Points: {Content}

VI. Follow-Up Observation Checklist

• {Observation Point 1}
• {Observation Point 2}
• {Observation Point 3}

---

Quality Requirements

1. Breadth analysis must reflect the relationship between "index performance" and "individual stock participation"; it cannot cover only one side.
2. It is necessary to clearly judge whether the market belongs to healthy diffusion, localized grouping, or weak repair, to improve readability.
3. Weak breadth does not necessarily equal bearishness, but it must explain where the risk comes from.
4. If different breadth indicators give opposite signals, the points of conflict should be clearly written out.
5. The output should help users identify the true health of the broad market, rather than remaining at the surface level of the index.