Understand the numbers
Short, plain-English explainers for the numbers on this site. None of this is investment advice; it is vocabulary.
What the VIX actually measures
The VIX is not a fear thermometer someone sets by hand. It is calculated from the prices traders pay for S&P 500 options over the next 30 days. When investors pay more for protection, the VIX rises. Readings under 15 suggest calm, 15 to 25 is normal, and above 30 usually means genuine stress. Our Analysis page also shows longer tenors: when the 9-day VIX rises above the 3-month, markets expect near-term turbulence.
How to read a put/call ratio
A put option profits when prices fall; a call profits when they rise. The put/call ratio compares the volume of the two. A ratio near 1.0 is balanced. Well above 1 means traders are buying more downside protection, a defensive tilt. Extreme readings often mark turning points: heavy hedging can mean the selling is close to exhausted.
Why Treasury yields move stocks
The 10-year Treasury yield is the price of safe money. When it rises, bonds compete harder with stocks for investor dollars, and the math used to value future company earnings gets harsher. That is why fast yield spikes often hit expensive growth stocks hardest. Yields rise on strong growth, sticky inflation, or heavy government borrowing.
Credit spreads, the market's stress gauge
A credit spread is the extra yield a company must pay over Treasuries to borrow. Investment-grade spreads under 1% signal confidence. High-yield spreads under 3% signal an unusually relaxed market; over 5% signals worry about defaults. Spreads often widen before stock markets fall, which is why professionals watch them closely.
What RSI does and does not tell you
The relative strength index compares recent gains to recent losses on a 0 to 100 scale. Above 70 is conventionally called overbought and below 30 oversold. It is a measure of speed, not value: strong trends can stay overbought for months. Treat extreme RSI as a prompt to look closer, never as a signal by itself.
Sector rotation, the market's mood ring
The 11 S&P 500 sectors rarely move together. When technology and consumer discretionary lead, investors are embracing risk. When utilities, staples, and healthcare lead while the index falls, money is hiding, not leaving. Our daily sector snapshot makes the day's rotation visible at a glance.