If the (blue line) number of Positive Strength stocks is greater than the number of Negative Strength stocks (red line), then the Bulls would have the dominant power and the market bias would be to the upside. Since we are measuring 500 stocks, above the 250 level would be the half-way Equilibrium point for which you would also want to see the number of Positive stocks to be above that level. (The higher the amount over that level, the stronger the Bulls are.)
If on the other hand, the number of Negative Strength stocks is above 250 and greater than the number of Positive Strength stocks, then the Bears would have the dominant power and the market bias would be to the downside.
Think about it ... how could the market move up higher if the number Negative Strength stocks were outnumbering the number of Positive Strength stocks? ... and how could the market move up if the Negative Strength stocks were also increasing in numbers as time went on?
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