Updated Models & Spotlight Chart 2/23/2025

VIX Rises, Equities Threaten Support, One Sector Setup

Last week’s call on volatility was timely, with a decent size move occurring on Friday accompanied by the largest decline in large cap equities so far this year. We’ll see what continues from it with breadth continued to look weak as 6% of stocks are at a 6-month low, 24.5% at a 20-day low, over 75% fell on Friday and almost 60% are down 10% or more. Risk Appetite took a big step down this week as several ratios weakened. Small caps are off by over -10% now for one example. SPX remains above long-term support, but it’s on watch should we continue to fall this week.

This week there are two Spotlight Charts, the first looking at asset size performance and the second looking at excessively bearish sentiment in one sector based on fund flows.

Summary of Models

Index & Sector Performance Summary