Deep Dive Update for Monday March 24, 2025

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Summary of the Deep Dive Update prepared for Monday, March 24, 2025:
This update analyzes various charts to gain insights into market trends, focusing on those not used in other daily updates and some unique to this update.
Key points include:
1. VIX Analysis: The VIX (volatility index) has been above 20 recently, indicating negative annualized returns and market pressure. However, it dropped below 20 (high 19s) late last week, suggesting subsiding fear. The 50-period moving average shows a rising trend in late 2024 and early 2025, but not consistently above 20, avoiding a confirmed downtrend. The VIX's speed and correlation with the S&P 500 are also showing neutral conditions currently.
2. VVIX and Skew Index: The VVIX (volatility of VIX) indicates the VIX is rising faster than its own volatility measure, aligning with recent market declines. The Skew Index, which tracks market bias via out-of-the-money options, has dropped from high levels to neutral, offering no new insights beyond other charts.
3. Stock vs. Bond Volatility: The VIX vs. MOVE Index comparison shows stocks are more volatile than bonds lately. Bonds are up year-to-date, while stocks, especially mega caps, struggle due to weaker earnings projections and market pressure.
4. Large Cap Growth ETF: This ETF is below its 200-day moving average, with shorter-term averages rolling over, signaling weakness. A recovery above this level is needed for a positive shift.
5. Risk On/Off and Large vs. Small Caps: The risk on/off relationship has been choppy at lower levels, indicating a defensive market stance. Large caps are outperforming small caps, but both are under pressure with no clear trend with the ratio.
6. Market Distance from Lows: Despite recent declines, the S&P is up 62.18% from its October 2022 low and 38.11% from its October 2023 low as of March 21, 2025.
7. Technical Alerts and Rankings: Weekly alerts show improvement (more positive days), but the market remains in a downtrend. Six indexes (S&P, NASDAQ 100, Dow, etc.) are ranked technically from 0-100, with the Dow leading at 45.6 (still weak) and small caps lagging at 6.7.
8. Trend Indicators: Short-term (10-50 period) and intermediate-term (50-100 period) moving average rainbows show the market below key levels, with lines rolling over, confirming a downtrend. Long-term (50-250 period) trends are also vulnerable as the SPX stays below the rainbow.
9. Other Indicators: The Advance/Decline ratio shows slight improvement, with volume outperforming price due to shifts from growth to value stocks. The Boom Indicator and Standard Deviation suggest a slowing decline, while the Pring Bottom Fisher and Mass Index hint at potential buy signals that haven’t fully materialized.
10. Market Position: The S&P is down 7.76% from its February 19, 2025, all-time high, below the 10% correction threshold. A drop below 10% again could signal longer-term negativity.
Overall, the market shows signs of stabilization and minor recovery attempts but lacks conviction, remaining in a short- to intermediate-term downtrend with longer-term trends at risk if weakness persists. The video uses these charts to provide a deeper, supplementary perspective to daily updates.

PDF of Charts and Slides used in today's video:
https://drive.google.com/file/d/1TAJBfOAUyVe3sXAa6Q9ndcBDzqjXLO7h/view?usp=sharing

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DISCLAIMER This video is for entertainment purposes only. I am not a financial adviser, and you should do your own research and go through your own thought process before investing in a position. Trading is risky!