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The latest reading, through Friday July 23, is 1.5% lower than the previous week.
Let's take a look at the index with an overlay of the S&P 500. The purpose is to get a sense of how the index correlates to market behavior.
As we would expect, the index is inversely correlated with market performance, but the movement doesn't fall into a neat category of leading, lagging or coincident.
Here's a view of the past five years, which gives a close-up look at the index during the Financial Crisis.
The shorter timeframe makes it clearer that the Stress Index began rising before the market peak in 2007, and the Stress Index peaked before the market low of 2009. However, the relationship over the longer timeframe doesn't show a consistent pattern of financial stress leading the market.
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