24 key market signals decoded into simple English. No jargon, just actionable insights.
Is the market overbought, oversold, or just right?
7 IndicatorsIs the dollar strong or weak? What about other currencies?
4 IndicatorsAre investors seeking safety or taking risks?
5 IndicatorsGold, oil, copper - what are they saying about the economy?
4 IndicatorsHow are international markets performing?
2 IndicatorsSentiment, positioning, and market internals
2 IndicatorsThese signals tell you if the stock market is overextended (too high, ready to drop), oversold (too low, ready to bounce), or healthy. Think of them as the market's vital signs.
The VIX measures how nervous investors are. Low VIX = calm market. High VIX = panic.
How far is the S&P 500 from its all-time high?
What percentage of stocks are going up vs. down?
Ratio of stocks hitting new 52-week highs vs. new lows.
Put/Call ratio shows how many investors are betting on a drop vs. a rise.
How much money investors are borrowing to buy stocks.
CNN's composite of 7 indicators measuring market sentiment.
When the dollar is strong, US stocks and commodities tend to struggle. When the dollar is weak, global markets and commodities usually rally. Currency movements affect everything.
The DXY measures how strong the US dollar is vs. other major currencies.
How many dollars it takes to buy 1 euro. Shows Europe vs. US strength.
How many yen it takes to buy 1 dollar. Yen is a "safe haven" currency.
Australian dollar (commodity currency) vs. Japanese yen (safe haven). Best measure of global risk appetite.
Bonds compete with stocks for investor money. When bond yields rise, stocks often fall (investors choose safer bonds). When yields fall, stocks often rise (investors seek higher returns).
The interest rate on 10-year US government bonds. The most important rate in finance.
Difference between 10-year and 2-year Treasury yields. An "inverted" curve (negative) often precedes recessions.
High Yield Spread: How much extra yield investors demand to hold risky corporate bonds vs. safe government bonds.
MOVE Index: Like the VIX but for bonds. Measures expected volatility in Treasury bonds.
TLT tracks 20+ year Treasury bonds. When TLT rises, yields are falling (good for stocks). When TLT falls, yields are rising (pressure on stocks).
Commodities tell you about inflation, economic growth, and global demand. Gold = safety. Oil = growth. Copper = industrial strength.
When gold rises, investors are scared. When gold falls, investors are confident.
Oil prices reflect global economic demand. Rising oil = strong economy. Falling oil = weak demand or recession.
Copper is called "Dr. Copper" because it's so good at diagnosing the economy. Used in construction, manufacturing, and electronics.
Copper/Gold ratio: When rising, investors favor growth (copper) over safety (gold). When falling, fear dominates.
US markets don't exist in isolation. International markets often lead or lag US stocks, providing early signals.
EEM tracks emerging market stocks (China, India, Brazil, etc.). Risk-on asset.
EuroStoxx 50 or VGK tracks European stocks. Often leads US markets.
These are more sophisticated indicators used by professional traders. They measure market positioning and sentiment extremes.
McClellan Oscillator measures the momentum of advancing vs. declining stocks.
Tracks institutional buying/selling pressure vs. retail.