An economic indicator using market data from FED, truck index, and Redbook to assess market conditions and predict short-term economic trends with high S&P 500 correlation.
Explore complementary indicator rolesHow it works
The indicator analyzes multiple economic data sources including Federal Reserve M2 money supply, net liquidity, heavy truck index, and Redbook retail sales index. It calculates a composite score by comparing current values against a dynamic 5-year range, allowing for flexible interpretation of economic indicators.
By converting these diverse economic metrics into a percentage-based index, the signal provides a comprehensive view of underlying economic conditions. The methodology normalizes different data points, creating a unified metric that can be compared across time periods and potentially predict short-term market movements.
Why it may be useful
This indicator offers traders a sophisticated economic perspective by integrating multiple data sources beyond traditional price-based analysis. It provides insights into potential market shifts by revealing underlying economic trends that might not be immediately apparent from price action alone.
By highlighting discrepancies between economic fundamentals and current market pricing, the indicator helps traders identify potential market inefficiencies. Its high correlation with the S&P 500 makes it a valuable tool for understanding broader market dynamics and potential future price movements.
When to explore it
The indicator is most effective when used in conjunction with other technical and fundamental analysis tools, particularly on daily and hourly charts. It works best for traders seeking to understand broader economic context and potential market turning points before they are reflected in price action.
Traders should pay special attention to significant deviations between the indicator's theoretical economic trajectory and current market prices. These divergences can signal potential market corrections or emerging trends, making the indicator particularly useful for identifying early-stage market movements.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
