Disclaimer:
The features and tools demonstrated in this video reflect the TradeSmith platform as of the recording date. Please note that our software is continuously updated to enhance your experience. The current site may appear differently.

Published: January 9, 2025.

Hi folks! Marina Stroud here. I am your Senior Product Education Specialist.  

Today, we’ll examine TradeSmith’s Market Outlook and provide insights to help you assess the current state of the markets.   

Great, let’s head to the website. 

To access your Market Outlook tab, go to the Markets page at the top navigational header. This page has four tabs: Market Outlook, S&P Sectors, Commodities, and Performance Leaders   

Let’s start with the Market Outlook tab. 

The Market Outlook tab is designed to help you evaluate the overall health of major U.S. and foreign markets based on our indicators and price data.  

Image taken from an Ideas Elite account on Jan. 9, 2026. 

Each market tile provides the information to quickly assess its health and underlying components.  

Imagine running on the soft sands of the beach. You are not running anywhere very quickly, and the same is true for the markets. A cautionary approach is warranted when an index and its majority components are in the Red Zone, as this tends to bog down the market. 

The Bull or Bear Market signals are designed to provide early warnings of potential shifts toward a bull or bear market. They are derived from each market’s health and health distribution, giving you a comprehensive view of the market’s direction.  

Ideas Premium and Elite members also have access to our Fear & Greed tool. 

Our Fear & Greed tool allows you to see the driving emotions in today’s market. To review the indicators in more detail, click the “Detailed Overview” link. 

If you click on any index ticker from the “Tile” view, the site will route you to the Holdings tab of the Asset Details page, where you can review its underlying components.  

If you want to see a more birds-eye view of all the markets, you can change it to a “List” view. 

Within the “List” view, you can review the health status of each market. For example, the S&P 500 Index (SPX) has been in the Long-Term Health Indicator Green Zone for approximately seven months (8m+).  

Image as of Jan. 9, 2026.

• Y = years 
• M = months 
• W = weeks 
• D = days 

The Long-Term Health Indicator is a simple Green, Yellow, Red light system to help you know if a security is in a healthy condition. When a security is in the Green Zone, its price is moving well within its normal risk range or Volatility Quotient (VQ). If the security’s price drops to the Yellow Zone or by about half of its VQ, that means caution, and it is going through a period of correction. Prices can move back up into the Green Zone or ultimately continue moving lower. 

The Red Zone indicates the security is unhealthy, dropping beyond its VQ and triggering a sell signal. 

When reviewing the markets, you want to invest in healthy stocks within strong-performing markets. If a market is in the Red Zone, you will typically see a high distribution of Red Zone underlying components.  

If the index you are following is in the Red Zone, it does not mean you need to immediately sell your positions. You want to be cautious and continue following your exit strategies. You will also be alerted if any index triggers our Bull and Bear Market signals. 

To learn more about our Health Indicator, click here. 

There are a couple of cool features I want to point out. 

You can go back in time to compare the market’s previous health and price data by clicking in the date box on the upper left of the page. This feature allows you to adjust the year and set a specific date.

The next neat feature is the ability to scan for the underlying market components using our Screener tool. So, if you want to find the Green Zone underlying components of the S&P 500 and incorporate other technical and fundamental metrics into your scan, click the “View Components” link from the blue drop-down triangle.

You can also examine the health of the S&P 500 Sector ETFs by going to the S&P Sectors tab. You will see similar sector cards in the “Tile” view and a birds-eye glimpse from the “List” view. 

From the “List” view, you can also scan for sector stocks by hitting the “View Components” link from the blue drop-down triangle. 

Next up is the Commodities tab. 

This dashboard offers an overview of today’s top commodities. By simply clicking on a commodity ETF’s ticker, you can dive deeper into its details.  

The last tab we will review under the Markets page is Performance Leaders. 

The Performance Leaders tool highlights top-performing stocks and ETFs. You can filter your results by markets, sectors, industries, latest close prices, and volume. 

You can specify the period on the upper left to view advances, declines, highs, and lows.  

• Advances: These tickers show the stocks with the largest price gains during the selected period. 
  Use this section to quickly spot the strongest performers and stocks showing positive momentum. 
• Declines: These tickers show the stocks with the largest price drops during the selected period. 
  Use this section to identify stocks that are underperforming or experiencing notable downward pressure. 
• Highs: These tickers show the stocks that reached their highest price during the selected period. 
  Use this section to find stocks hitting new peaks and demonstrating strength. 
• Lows: These tickers show the stocks that reached their lowest price during the selected period. 
  Use this section to identify stocks that are at a low point, which may indicate heightened risk or potential rebound opportunities. 

That’s a wrap on today’s lesson! Please feel free to contact us if you have any questions.   

Understanding the market’s overall health is essential to making informed, confident decisions.  

Thanks again, and I’m looking forward to seeing you in the next round. Until next time, bye! 

Need Help?

Our Customer Success team is here to help every step of the way.

• Phone: 1-866-385-2076 (toll-free)
• Email: [email protected]

*Note—The tabs and features you see on your TradeSmith Finance site will vary based on your subscription(s) and subscription level(s).