Deep Dive Update for Monday October 6, 2025

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The video is a "deep dive" market analysis for Monday, October 6, 2025, focusing on charts not regularly featured in daily updates to gain deeper insights into market trends.
Key points:
Long-Term VIX (Volatility Index): Despite new S&P all-time highs, the VIX remains low, under 20, showing no significant momentum (MACD and RSI 9 indicate neutral movement). A slight uptick in the VIX/VVIX ratio suggests some volatility pickup, but not alarming.
Market Sentiment: The ulcer index and skew index show low fear, but a high S&P-VIX correlation indicates the market anticipates a big move. The skew index, based on out-of-the-money options, isn’t giving a signal.
Market Ratios: Large cap vs. small cap ratio is declining, suggesting small caps are outperforming slightly, supported by expectations of Fed rate cuts.
Stocks-to-bonds volatility ratio is rising, hinting at increasing stock volatility.
Growth-to-value ratios show mixed signals, with small caps at risk of a "death cross" but mid-caps showing stronger growth.
Advance-Decline Lines: S&P volume-based advance-decline line is stronger than price-based, a positive sign. NYSE advance-decline line shows slight weakness but remains positive overall.
Technical Indicators:
Rainbow charts (short, intermediate, long-term) show prices above moving averages, indicating positive trends.
Bollinger Bands, Connor’s RSI, and mass index show no extreme signals.
Sector and Market Comparisons:
NASDAQ outperforms (ETF score 89.4), followed by NASDAQ 100 (86.6), small caps (82), S&P (74.9), Dow (56.1), and mid-caps (last).
Financials underperforming S&P 500, but regional banks hold above the 50-day moving average.
Emerging markets outperforming developed markets slightly; U.S. stocks recently underperforming German DAX.
Inflation and Bonds: Ratios of cash to bonds and TIPS to bonds suggest the market isn’t worried about inflation or rising rates. Strong correlations exist between S&P, long-term bonds, and QQQs.
Sectors: Semiconductors hit all-time highs, home builders improve with lower rates, transports are range-bound, retail shows recovery, and regional banks are stable.
Overall: The S&P 500 is positive but possibly extended in some areas, with some mixed signals (e.g., hotels underperforming utilities). No major red flags, but volatility and small-cap performance are areas to watch.

PDF of Slides:
https://drive.google.com/file/d/1M6Bc5pMLbcq7hB5IIjQa9g6liDtskyIL/view?usp=sharing

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!