🌟 Capital Market Chronicles – Episode 281: TECHNICAL ANALYSIS – MARKET INTERNALS (Part I)
“Price is the headline. Internals are the full report.” 📰📊
“Everything looks strong!”
— pause.
Sometimes the market smiles in public and limps in private.
That’s where Market Internals step in.
🔍 Why Price Alone Isn’t Enough
Price tells you what happened.
Market Internals tell you:
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Who participated
-
How many participated
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Whether conviction was real
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Whether optimism is sustainable
A market can rise because:
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Broad participation exists
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Or five heavyweight stocks are doing all the lifting
Both look identical on a price chart.
But internally?
Very different stories.
🧠 What Are Market Internals?
Market Internals are a collection of indicators that measure the underlying health, participation, sentiment, and strength of the market.
They analyse:
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📊 Market Breadth
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💭 Market Sentiment
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💪 Market Strength
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🔄 Market Dynamics
Think of them as diagnostic tools.
Price is the body temperature.
Internals are the blood test.
🎯 The Four Pillars
1️⃣ Breadth
How many stocks are participating in the move?
If 80% of stocks rise, that’s strength.
If 10% rise and 90% struggle, that’s narrow leadership.
Narrow leadership often cracks.
2️⃣ Sentiment
Are traders optimistic?
Too optimistic?
Markets often turn when emotions reach extremes.
Excess greed and extreme fear are both warning lights.
3️⃣ Strength
Is the trend backed by internal momentum?
Or is it running on fumes?
Internals reveal internal power — not just external appearance.
4️⃣ Dynamics
Are conditions shifting?
Sometimes price hasn’t reversed yet —
but internals already have.
And internals often move first.
Market Internals don’t predict the future.
They reveal the condition of the present.
And informed traders respect conditions.
Next: We break down Breadth indicators — the true measure of participation.
⚠️ Disclaimer: This Blog is for general guidance only and does not replace personalised financial advice.
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