If you do any statistical analysis on this indicator, you will realize it is meaningless.
If it is as useless as you imply, then logically, so are the 7 indicators which form it's basis.
The CNN model is not poll based but derived from 7 market indicators
Are these 7 indicators meaningless also?
•Stock Price Momentum: The S&P 500 (SPX) versus its 125-day moving average
•Stock Price Strength: The number of stocks hitting 52-week highs and lows on the New York Stock Exchange
•Stock Price Breadth: The volume of shares trading in stocks on the rise versus those declining.
•Put and Call Options: The put/call ratio, which compares the trading volume of bullish call options relative to the trading volume of bearish put options
•Junk Bond Demand: The spread between yields on investment grade bonds and junk bonds
•Market Volatility: The VIX (VIX), which measures volatility
•Safe Haven Demand: The difference in returns for stocks versus Treasuries
Edited by Rogerdodger, 01 November 2021 - 12:07 AM.