Three regional scores, one transparent framework
All three scores combine four groups of evidence: equity breadth, credit-market appetite, volatility, and weekly regime confirmation. The US Market Score uses U.S.-listed equity proxies and liquid US/Canada report-universe breadth. The Europe Market Score uses European breadth plus European equity ETFs. The Asia Market Score uses Asian breadth plus Asia-Pacific and country ETFs.
Europe and Asia do not pretend to have fully local credit and volatility components. Their displayed credit and volatility checks use liquid global USD proxies, clearly labelled as global. This provides a repeatable global risk backdrop while keeping the equity and breadth evidence genuinely regional. None of the scores is a prediction or a timing signal by itself.
What differs by region
| Score | Regional equity evidence | Global components shown separately | Interpretation |
|---|---|---|---|
| US Market Score | SPY, QQQ, IWM, RSP, and liquid US/Canada breadth. | U.S. high-yield credit, Treasury proxies, and VIX are directly relevant market inputs. | The established market backdrop used by current historical US market-score strategy research. |
| Europe Market Score | FEZ, VGK, IEV, EWG, EWU, and liquid European breadth. | Global high-yield credit, Treasury, and VIX proxies. | European equity context with global risk appetite visible, not concealed as a local European credit model. |
| Asia Market Score | AAXJ, EPP, EWJ, MCHI, EWT, and liquid Asian breadth. | Global high-yield credit, Treasury, and VIX proxies. | Asian equity context with global risk appetite visible, especially useful where local market structures differ substantially. |
How to use the four ranges
| Range | Research interpretation | Practical response |
|---|---|---|
| 70-100 Risk-on | Most components support risk-taking and fresh trend entries. | Normal selectivity still applies; prefer liquid candidates with independent chart and fundamental support. |
| 50-69 Selective | The backdrop is mixed. Some leadership remains, but the evidence is not broad. | Favour the strongest setups, reduce the number of simultaneous ideas, and avoid chasing extended prices. |
| 30-49 Defensive | Risk appetite or participation is weak enough to make new positions less forgiving. | Prioritise existing risk control, wait for stronger confirmation, and treat fresh entries as exceptions rather than defaults. |
| Below 30 Risk-off | Several components point to a stressed or deteriorating environment. | Do not interpret an isolated screen match as evidence that the broad market supports a new aggressive position. |
Why the visible components matter
A headline score without its ingredients is easy to over-trust. TrendRadar therefore shows the individual checks: whether the relevant regional equity ETFs are above rising 200-day averages, whether local liquid breadth is improving, whether global high-yield credit is stronger than safer bonds, and whether weekly trend models agree. A score can remain Selective because participation, credit, or weekly confirmation is weak even while one headline index is near a high.
This distinction matters for momentum screens. A handful of headline stocks can make a chart look healthy while participation narrows underneath. Conversely, a moderate score can still contain constructive pockets if leadership is broadening and volatility is falling. For Europe and Asia, readers should additionally consider currency, local monetary policy, and country concentration.
A disciplined reading sequence
- Open the current TrendRadar report and read the market-score detail first.
- Choose a strategy preset whose current candidate count and historical evidence you understand.
- Inspect the individual chart for extension from moving averages, support levels, and liquidity.
- For an individual company, read the linked fundamental page and recent company disclosures before making any decision.
- Use the market backdrop to decide how selective and how small a new idea should be, not to replace the rest of the research.
Limitation
Each Market Score is a compact risk map built from transparent proxies. Europe and Asia currently use regional equity and breadth evidence alongside global credit and volatility proxies; their score is therefore a research context rather than a historically validated replacement for US market-score strategy gates. No score can anticipate a policy shock, earnings surprise, geopolitical event, currency break, or company-specific event.