Breadth of Market Theory

A hypothesis predicting that, when a stock index sees more issues advancing than declining, the market will increase, and vice-versa.

Zoltar is a “financial psychic” who claims the ability to predict the fortunes of the stock market. After a Monday when 27 of the 30 stocks in the Dow Jones experienced a decline in their prices, Zoltar predicts that the week will end with the Dow Jones index lower than the prior week.

Whether his “prediction” proves true or not, he is just employing the Breadth of Market Theory.