VMSI™ Institutional Market Sentiment Index
Five Market Forces
Market conditions change before price responds.
VMSI™ integrates five forces that shape market direction, resilience, and risk.
Most investors analyze markets in parts. VMSI™ measures the system.
| Component | Current | Prior |
(w/w)
|
Interpretation |
|---|---|---|---|---|
| Composite |
61.9
|
63.6 |
-1.7
|
Liquidity tightened and index momentum weakened, while value leadership, equal-weight participation, and orderly credit limited the decline. |
| Momentum |
65.5
|
67.4 |
-1.9
|
Major indexes declined, led by Nasdaq weakness, while equal-weight and value leadership contained the broader deterioration. |
| Liquidity |
60.0
|
63.4 |
-3.4
|
Reserve balances fell as the TGA rebuilt, producing a materially weaker operational-liquidity backdrop despite stable Federal Reserve assets. |
| Volatility & Hedging |
57.6
|
58.4 |
-0.8
|
Equity volatility eased, but higher rates volatility and stronger index hedging kept convexity conditions less favorable. |
| Safe Heaven Demand |
49.7
|
49.4 |
+0.3
|
Gold and the dollar strengthened, but falling Treasury prices prevented confirmation of a broad defensive flight. |
Understanding VMSI™
VMSI™ integrates five market forces to measure the conditions shaping direction, resilience, and risk before they are fully reflected in price.
VMSI™ combines five core indicators with an Advanced Signal Layer to produce an integrated view of market regime. IC-VMSI™ extends the framework to institutional capital behavior, while ICMI™ independently measures where capital is migrating across markets.
VMSI™ is updated weekly using the most recently completed market data.
The Advanced Signal Layer measures structural forces beyond the VMSI™ Composite—including participation, convexity, capital readiness, geopolitical pressure, and regime persistence—by evaluating how these forces interact to distinguish temporary market movement from durable structural change
IC-VMSI™ measures how institutional capital is accumulating, deploying, and positioning across markets to identify where conviction is strengthening before it is fully reflected in price.