> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stratalerts.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Sector Breadth

> See candle-state breadth across all 11 SPDR sectors, then drill into every ticker's D/W/M/Q/Y TFC alignment to scan where conditions favor your setups.

<Note>
  The Sectors page requires the **Founders Plan**. Basic plan subscribers do not have access to sector breadth or the sector drill-down modals. [Compare plans →](/pricing)
</Note>

## Spot Leaders and Laggards Instantly

The Sectors page maps the entire market into the 11 SPDR sector ETFs and shows you, in real time, how many symbols inside each sector are in each candle state. Rather than scrolling through hundreds of individual charts, you get a single view that tells you which sectors have bullish participation, which are compressing, and which are leaning bearish — so you can concentrate your scanning where the wind is at your back.

## How breadth is counted

Each sector card displays a live breakdown of the symbols it contains, bucketed into four candle states:

| State  | Meaning                                                                            |
| ------ | ---------------------------------------------------------------------------------- |
| **1**  | Inside candle — the symbol is compressing between its parent candle's high and low |
| **2U** | Bullish candle — the symbol has broken above its parent candle's high              |
| **2D** | Bearish candle — the symbol has broken below its parent candle's low               |
| **3**  | Outside candle — the symbol has broken both sides of its parent candle             |

A sector card that shows a high 2U count and few 2Ds signals broad bullish participation. A card dominated by 1s tells you the sector is coiling and has not picked a direction yet.

<Note>
  Breadth counts refresh continuously throughout the session. The numbers you see reflect the current state of all active symbols in that sector — not a snapshot from the open.
</Note>

## The 11 SPDR sectors

<CardGroup cols={3}>
  <Card title="XLB — Materials" icon="mountain">
    Basic materials companies including chemicals, metals, and mining.
  </Card>

  <Card title="XLC — Communication Services" icon="tower-broadcast">
    Media, telecom, and internet platform companies.
  </Card>

  <Card title="XLE — Energy" icon="bolt">
    Oil, gas, and energy equipment companies.
  </Card>

  <Card title="XLF — Financials" icon="building-columns">
    Banks, insurance, asset managers, and financial services.
  </Card>

  <Card title="XLI — Industrials" icon="gear">
    Aerospace, defense, machinery, and transportation companies.
  </Card>

  <Card title="XLK — Information Technology" icon="microchip">
    Semiconductors, software, and hardware companies.
  </Card>

  <Card title="XLP — Consumer Staples" icon="cart-shopping">
    Food, beverages, household products, and retail staples.
  </Card>

  <Card title="XLRE — Real Estate" icon="house">
    REITs and real estate management companies.
  </Card>

  <Card title="XLU — Utilities" icon="plug">
    Electric, gas, and water utility companies.
  </Card>

  <Card title="XLV — Health Care" icon="stethoscope">
    Pharmaceuticals, biotech, medical devices, and managed care.
  </Card>

  <Card title="XLY — Consumer Discretionary" icon="tag">
    Autos, retail, hotels, restaurants, and leisure companies.
  </Card>
</CardGroup>

## Drilling into a sector

Clicking any sector card opens a modal that lists every ticker assigned to that sector. Each symbol shows its candle state across all five higher timeframes — Daily, Weekly, Monthly, Quarterly, and Yearly — giving you a full TFC (Timeframe Continuity) snapshot without opening a single chart.

<Steps>
  <Step title="Identify the strongest sector">
    Scan the sector cards on the page. Look for the sector with the highest 2U count relative to its total symbols. That sector has the broadest bullish participation at the daily timeframe.
  </Step>

  <Step title="Open the sector modal">
    Click the sector card to open the drill-down modal. You will see every ticker in the sector displayed in a grid with its D, W, M, Q, and Y candle states.
  </Step>

  <Step title="Find symbols with TFC alignment">
    Look for symbols where multiple timeframes show 2U. A symbol showing 2U across D/W/M is exhibiting strong upside continuity and is a candidate for further review in the setups table.
  </Step>

  <Step title="Filter the setups table">
    Click **Browse Setups** at the top of the Sectors page to jump straight to the [Setups Table](/scanner/setups-table). From there, filter by sector or add your highest-conviction names to a watchlist to monitor throughout the session.
  </Step>
</Steps>

<Tip>
  The **Browse Setups** button at the top of the Sectors page takes you directly to the Setups Table, so you can move from sector-level breadth analysis into individual setup scanning in one click.
</Tip>

## Practical use cases

<AccordionGroup>
  <Accordion title="Trade with sector tailwinds">
    Before entering any long setup, check that the symbol's sector is showing more 2Us than 2Ds. A stock breaking out of a 1-2U on the daily has a higher probability of following through when most of its sector peers are also in 2U — the broader move is already underway.
  </Accordion>

  <Accordion title="Avoid bearish sectors">
    If a sector's card shows a majority of 2Ds and a bearish higher-timeframe TFC on the sector ETF itself, long setups in that sector carry additional headwind. Identify these sectors early and deprioritize them for long-side scanning.
  </Accordion>

  <Accordion title="Spot sector rotation">
    Watch for sectors that shift rapidly from a high 1-count (compression) to a high 2U-count during the session. A sector breaking out of a broad compression phase can produce multiple tradeable setups within a short window.
  </Accordion>

  <Accordion title="Use the sector ETF itself as a filter">
    Every sector card also reflects the candle state of the ETF (for example, XLE for Energy). Before trading names within the sector, confirm that XLE itself is in 2U on the timeframe you are trading. The ETF candle is the most direct read on sector-level TFC.
  </Accordion>
</AccordionGroup>

<Tip>
  After identifying a strong sector, open its modal and look for symbols that show 2U on the Weekly and Monthly timeframes in addition to the Daily. Those names have continuity across all three timeframes and are the highest-conviction candidates in that sector's current move.
</Tip>