Index Value Plot

http://www.muhlenkamp.com/investment/principles/whats_the_new_normal_economics_rules_markets

In an index value plot, an index value is plotted on a line graph instead of an absolute number, and makes all plotted values relative to this index value. The above image is an index value plot for the expansion and downsizing of companies. Here, the index value is 50, and all other points are plotted in reference to this index value. So, when the index value is above 50, that means more companies are expanding than contracting and when the index value is below 50, more companies are contracting than expanding.