AD Line of S&P Sectors

Advance-Decline Line of S&P 500 Sectors
This indicator tracks the breadth strength of the S&P 500 by combining an unweighted Advance-Decline (A/D) Line and a market-cap weighted A/D Histogram across all 11 major S&P sectors.

Key Features
Sector A/D Histogram: Measures sector breadth based on whether each sector advanced or declined, then weights it by its current estimated market cap share.

Unweighted A/D Line: Smooth average of sectors equally weighted, giving an alternative breadth view that’s less biased by large sectors.

Top Weighted Stocks Tracker: Tracks the daily percentage change of the top 10 highest-weighted S&P 500 stocks, scaled by their index weights, and overlays them as a background area plot.

Zero Crossovers: Histogram and line crossing zero can help highlight broadening strength or weakness.

Customizable Sector Weights: Sector weights can be adjusted in the settings. It is recommended to review and update these periodically to reflect changes in S&P sector allocations.

Repaint Option: Uses a user-selectable repaint mode for flexible bar update logic.

How to Use
Trend Confirmation: When the weighted histogram and unweighted line are above zero together, it indicates broad sector strength; below zero suggests broad weakness.

Neutral Zone: Values between +0.5 and -0.5 (or your custom thresholds) may imply a ranging market or slower movement.

Top Names Context: The top-weighted stocks area shows how much the index’s largest components are pulling the market up or down, relative to the broader sector breadth.

⚠️ Disclaimer
This script is for educational and informational purposes only and does not constitute financial advice. Always do your own research and consult with a qualified financial professional before making trading decisions. Use at your own risk.