Market Regime & Volatility Dashboard

The current market regime status, based on Hidden Markov Model probabilities for SP500 and Nasdaq, indicates a low volatility environment with 0.0% probability of high volatility in both SP500 and Nasdaq. This suggests that the current market conditions are characterized by low volatility, which may imply a period of relative stability in the markets.

The sector breakdown reveals that DIA, XLK, XLF, XLP, GLD, USO, SLV, and UUP are currently in high risk (high volatility) sectors, while SPY, QQQ, IWM, XLV, XLY, XLE, XLI, XLU, XLC, and TLT are in low risk (low volatility) sectors. This distinction is crucial for traders and investors as it highlights the areas of the market that are more prone to significant price movements.

The model implications for near-term risk exposure suggest that traders should be cautious with sectors such as DIA, XLK, XLF, XLP, GLD, USO, SLV, and UUP due to their high risk designation. In contrast, sectors like SPY, QQQ, IWM, XLV, XLY, XLE, XLI, XLU, XLC, and TLT may offer more stable investment opportunities. It is essential to monitor these sectors closely and adjust investment strategies accordingly to manage risk effectively.