The elusive and somewhat grail-like search for turning points: US, Stoxx and ES are currently under high stress –
Market Stress
This uses relative price movements to show when the prices of a market get out of line with their peers (we got the idea here.)
The gray lines measure stress. Stress is calculated as price moves relative to other markets. Peaks in stress indicate turning points.
Or, perhaps better: rising stress indicates diminishing returns/increasing risk in the current direction.
–h
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