Market Mood Framework
The Market Mood Framework combines multiple market signals into a single view of current market conditions. Instead of looking at trend, volatility, participation, and capital flow separately, the framework helps explain what is happening inside the market and how those conditions compare under different stress scenarios. The framework does not predict future prices. It summarizes current market structure using a consistent set of market metrics.
Current Market Mood
The Mood Score combines several market metrics into a single reading that summarizes current market conditions. A higher score indicates higher combined metric values, while a lower score indicates lower combined metric values. The score is not a buy or sell signal and should not be interpreted as a price forecast. Think of it as a summary meter that combines multiple market signals into one reading.
What Is Driving The Mood?
The Market Structure section breaks the Mood Score into four core components. Trend measures directional movement within the market. Breadth measures how many stocks are participating in that movement and helps identify whether participation is broad or concentrated. Volatility measures the amount of fluctuation in market activity. Flow measures the level of capital participation behind market activity. Together, these components help explain why the current Mood Score has its present reading.
Market Quality Indicators
These indicators compare market components with one another rather than viewing them independently. Trend / Volatility compares directional movement against market fluctuation. Breadth / Trend compares participation against directional movement. Flow / Volatility compares capital activity against fluctuation. These comparisons help explain how trend, participation, volatility, and flow interact within the market structure.
Scenario Testing
Scenario Testing shows how market metrics change under increasingly stressed conditions. Each scenario applies predefined stress assumptions and recalculates the framework. This allows comparison of how market structure changes as conditions become more difficult. These scenarios are not forecasts and do not predict future market movements. Their purpose is comparison across different stress environments.
Historical Context
The historical chart shows how Market Mood has changed over time. This helps place the current reading into a broader context and allows comparison with previous periods. Users can observe how current conditions compare with earlier market environments.
Sector Comparison
The Sector Comparison section shows how market metrics are distributed across sectors. This helps identify which sectors currently have higher or lower readings relative to other sectors and how participation is distributed across the market.