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Market research 2 min read

Read the Sector Heatmap · S&P 500

Move from the colors of S&P 500 sectors and stocks to a clear research question.

Inside TradeCleverSector Heatmap · S&P 500

Screen stocks. Study the context. Keep the ideas you want to revisit.

Read the legend, then look inside the groups. One color cannot tell the whole story.

Step 01

Start with the legend and date

A heatmap uses color to summarize a measure across many items. The Sector Heatmap · S&P 500 groups S&P 500 stocks by sector: each stock’s area follows its market cap and its color the selected period’s return. Read the legend to identify the performance scale and check the session date. Avoid comparing colors across two views until you know they use the same period and scale.

Step 02

Look for broad and mixed areas

Notice whether a sector is mostly moving together or contains a mix of positive and negative changes. A sector’s return is market-cap-weighted, so a few of its largest companies can make the whole group look strong. The map helps you locate an area to inspect, but the constituent detail is needed to explain it.

Step 03

Open a sector

Open a sector to see its S&P 500 stocks. Review the actual values behind the colors and compare individual stocks with the group.

Step 04

Choose the next view

Open a chart to inspect one stock, a sector’s industries to compare groups, or the Screener to define a watchlist. Write down the question that came from the map. This makes the next step more focused than browsing the strongest color without context.

Read our data and methodology notes for calculation context. This guide explains research tools and observations. It does not recommend a trade or investment.

Follow your curiosity

One good question leads to another.

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Open the Heatmap