Market Internals show what is happening beneath the surface. Price can break out or break down, but without participation from the broader market, the move is less likely to sustain.
Market Internals reveal whether the move has real support - or whether it is narrow and fragile.
What you see
Rotation
A badge showing the current capital flow regime:
| Label | What it means |
|---|---|
| RISK-ON | Capital is flowing into growth and cyclical sectors - bullish posture |
| DEFENSIVE | Capital is rotating into safe-haven sectors - bearish posture |
| MIXED | No clear rotation direction |
Below the badge, a narrative line explains what is driving the rotation read.
Tags
Colored chips highlight specific market conditions detected in real time - such as risk-on behavior, defensive rotation, narrow leadership, or whether futures or ETFs are leading.
Breadth
A summary of overall market participation:
| Read | Meaning |
|---|---|
| BULLISH | Broad participation supports upside |
| BEARISH | Broad participation supports downside |
| MIXED | Participation is split |
Leaders & Laggards
Colored chips show which sector ETFs are currently leading or lagging. Green chips are leaders. Red chips are laggards.
How to use it as a trader
1. Validate a breakout
ES is breaking above resistance. Rotation reads RISK-ON, Breadth is BULLISH, and multiple sectors are leading. That is broad participation - the breakout is more likely to follow through.
2. Spot a divergence
ES is pushing higher, but Rotation reads DEFENSIVE and Breadth is MIXED. The move lacks support. It does not mean it fails immediately, but it is a caution flag.
3. Gauge sustainability
Multiple leading sectors suggest wide participation. If leadership narrows too far, the move may be thinning out even if price still looks strong.
4. Read sector rotation for context
Defensive sectors leading while the index is flat can precede pressure lower. Risk-on sectors leading with futures out front often signals a healthier bullish tone.
Important notes
- Market Internals reflect live participation data. They are observation, not forecasting.
- Internals confirm or challenge what Market State and the desk context are communicating.