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The master composite is a single number and traffic light label that synthesizes sector capital flows into one directional bias for ES. It answers: "Right now, is the weight of evidence bullish, bearish, or neutral?"
| Label | Score | Meaning | Action |
|---|---|---|---|
| SUPER BULLISH | > +25 | Unified institutional buying. OTF buyer in control. | Trade with the trend. Long entries on pullbacks. Avoid shorting. |
| BULLISH | +10 to +25 | Broad risk-on flow. Moderate conviction. | Lean long, confirm with internals before entries. |
| NEUTRAL / MIXED | -10 to +10 | Signals split. Rotational, two-sided environment. | Fade edges of range. Don't chase breakouts. Smaller size. |
| BEARISH | -25 to -10 | Broad risk-off flow. Some pockets of strength remain. | Lean short, confirm with internals. Expect bounces. |
| SUPER BEARISH | < -25 | Broad liquidation. OTF seller in control. | Short bias. Don't try to catch falling knives. |
Neutral sub-labels: PUSH & PULL = both sides bid, choppy. MIXED FLOWS = sector disagreement, wait for consensus. NEUTRAL = genuine indecision, often pre-event.
The 11 S&P 500 GICS sector ETFs (SPDRs), showing where institutional money is flowing. ES tracks the S&P 500 index — these sectors ARE the index.
Perform best when economy is growing and confidence is high. When risk-on leads, it signals genuine growth buying.
| ETF | Sector | Wgt | ES Significance |
|---|---|---|---|
| XLK | Technology | 30% | THE dominant sector. When XLK is green, very hard for ES to be red. When XLK sells off, ES follows. |
| XLF | Financials | 13% | Rate-sensitive. Rising XLF = confidence in growth. Falling XLF often precedes broader weakness. |
| XLY | Discretionary | 10% | Consumer spending confidence. XLY lagging = consumer pulling back, recession signal. |
| XLC | Communications | 9% | Meta, Google, Netflix. Ad revenue driven. Overlaps with tech sentiment. |
| XLI | Industrials | 8% | Economic activity proxy. Manufacturing, transport. XLI strength = real economy humming. |
| XLE | Energy | 4% | Oil/gas driven. Can move independently on geopolitics. Rising XLE on oil spike = inflationary headwind. |
| XLB | Materials | 2% | Commodity-linked. XLB + XLI strength = global growth trade. |
Perform relatively better during slowdowns. Products people need regardless of economy. Defensive outperformance signals fear and flight to safety within equities.
| ETF | Sector | Wgt | ES Significance |
|---|---|---|---|
| XLV | Healthcare | 12% | Defensive giant. XLV outperforming during selloff = classic risk-off rotation. |
| XLP | Staples | 6% | Essentials. XLP leading = "grocery store trade" — fear of slowdown. |
| XLU | Utilities | 3% | Bond proxy. XLU strength in selloff = extreme defensive rotation. Rate-sensitive. |
| XLRE | Real Estate | 3% | REITs. Rate-sensitive and defensive. XLRE strength = yield hunting. |
| Column | Meaning |
|---|---|
| Wgt | Sector's approximate % of S&P 500. A 1% move in XLK (30%) impacts the index 15x more than XLB (2%). |
| Change | % change from yesterday's close. Green = up, Red = down. |
| 1m Mom | 1-minute momentum. Accel = price accelerating in direction. Hold = holding. Recov = recovering. Decel = decelerating. |
| Bias | Simple BULL/BEAR tag based on whether sector is up or down from yesterday's close. |
Difference between weighted risk-on score and defensive score. Shows capital rotation direction.
| Value | Label | Meaning |
|---|---|---|
| > +10 | RISK-ON | Institutions buying growth over safety. Strong long ES environment. |
| +3 to +10 | LEAN RISK | Slight risk-on advantage. Moderate long bias. |
| -3 to +3 | BALANCED | No clear rotation. Wait for conviction before directional stance. |
| -10 to -3 | LEAN DEF | Defensives holding up better. Caution on longs — money quietly moving to safety. |
| < -10 | DEFENSIVE | Strong defensive outperformance. Classic risk-off rotation. Institutional money expecting trouble. |
Semis are "picks and shovels" of tech. When institutions are aggressively bullish on growth, they overweight semis. SMH leading SPY = most aggressive growth money is active. When semis diverge, the broad market tends to follow semis.
Real-time participation measure. Every 60s, risk-on sectors up = +1, defensive sectors up = -1. Expanding = conviction, go with it. Contracting = defensive rotation, move fading. Mixed = rotational chop, expect mean reversion.
Count of sectors up vs down. Consensus (10-11 same direction) = trust the move, trend day potential. High divergence (4-6 split) = rotational chop, fade edges, balanced day.
Expected 30-day S&P 500 volatility from options prices. Levels: <15 calm, 15-20 normal, 20-25 elevated, 25-30 high fear, >30 extreme. The change% matters more than the level — rising VIX + falling ES = headwind, falling VIX + rising ES = tailwind.
When TLT rises, yields fall. TLT rising + ES falling = flight to safety (classic risk-off). TLT rising + ES rising = rate cut expectations (supportive). TLT falling + ES falling = rate fear, "sell everything" — worst case scenario.
Dollar vs major currencies. Strong dollar = ES headwind (hurts multinational earnings, tightens conditions). Weak dollar = ES tailwind (boosts overseas revenue, loosens conditions). Exception: during crises, normal inverse relationship can break.