Diffusion Index

See: Advance/Decline Index. Then come back.

Okay, hi. The diffusion index is yet another lens through which chartist/technical investors narrow the scope of their inspections, hoping to find good securities into which to throw their dough. Specifically, it focuses on the breadth and depth of a Conference Board Index to give a clearer picture of how broadly-well to narrowly-poorly a given sector or segment of the economy is doing.