Composite Sentiment Indicator (SPY/QQQ/SOXX + VixFix)

5 Sep

# Multi-Index Composite Sentiment Indicator

A comprehensive sentiment indicator that works across SPY, QQQ, SOXX, and custom symbols. Combines volatility, options flow, macro factors, technicals, and seasonality into a single z-score composite.

## What It Does

Takes multiple market sentiment inputs (VIX, put/call ratios, breadth, yields, etc.) and smooshes them into one normalized line. When the composite is high = markets getting spooked. When it's low = markets getting complacent.

## Key Features

- **Multi-Index Support**: Automatically adapts for SPY (uses VIX), QQQ (uses VXN), SOXX (uses VixFix), or custom symbols
- **VixFix Integration**: Larry Williams' VixFix for indices without dedicated VIX measures
- **Signal MA**: Choose from SMA/EMA/WMA/HMA/TEMA/DEMA with color coding (red above MA = risk-on, green below = risk-off)
- **September Focus**: Built-in seasonality weighting for September weakness patterns
- **Comprehensive Components**: Volatility, options sentiment, macro factors, technicals, and sector-specific metrics

## How to Use

**Basic Setup:**
1. Pick your index (SPY/QQQ/SOXX)
2. Choose signal MA type and length (EMA 21 is a good start)
3. Watch for extreme readings and MA crossovers

**Color Signals:**
- Red composite = above signal MA = bearish sentiment
- Green composite = below signal MA = bullish sentiment
- Extreme high readings (red background) = potential tops
- Extreme low readings (green background) = potential bottoms

**For Different Indices:**
- **QQQ**: Uses NASDAQ VIX (VXN) when available, falls back to VixFix
- **SOXX**: Includes semiconductor cycle indicators, uses VixFix for volatility
- **Custom**: Adapts automatically, relies on VixFix and general market metrics

## Components Included

**Volatility**: VIX/VXN/VixFix, term structure, historical vol
**Options**: Put/call ratios, SKEW index
**Macro**: DXY, 10Y yields, yield curve, TIPS spreads
**Technical**: RSI deviation, momentum
**Seasonality**: September effects, quad witching, month-end patterns
**Breadth**: S&P 500 and NASDAQ breadth measures

## Pro Tips

- Works well on Daily Timeframe
- September gets extra weight automatically - watch for August setup signals
- Keltner envelope breaks often mark sentiment exhaustion points
- Use alerts for extreme readings and MA crossovers

Works best when you understand that sentiment extremes often mark turning points, not continuation signals. High readings don't mean "keep shorting" - they mean "start looking for reversal setups."

## Settings Worth Tweaking

- Signal MA type/length for your timeframe
- Component weights based on what matters for your index
- Envelope multipliers for your risk tolerance
- VixFix parameters if default doesn't fit your symbol's volatility

The table shows all current component readings so you can see what's driving the signal. Good for context and debugging weird readings.

6 hari lalu

Nota Keluaran

* Updated Overlay = false to correctly display in separate pane from price chart *