OPEN-SOURCE SCRIPT
SentinelIndex
Overview The Sentinel Macro Index is a comprehensive macro-sentiment oscillator designed to provide a high-level view of the S&P 500's underlying health. Instead of focusing on pure price action, this indicator synthesizes critical macro-economic variables and institutional flow patterns to identify "regime shifts" in the market.
How it Works The index aggregates and normalizes several key pillars of market strength:
Liquidity Dynamics: Tracks M2 money supply trends and central bank liquidity pulses.
Credit & Yield Spreads: Monitors the yield curve and credit stress levels to gauge risk appetite.
Institutional Shadow Flow: Uses proprietary volume-weighting to identify where "Smart Money" is positioning relative to retail sentiment.
Insider Ratio Integration: Incorporates a calibrated baseline to filter out market noise.
Key Features
Dynamic Histogram: The color-coded bars represent the aggregate Macro Score.
Bullish/Bearish Divergence: Identify when the price is making new highs while the Sentinel Score is declining—a classic sign of institutional distribution.
Overbought/Oversold Thresholds: Helps identify exhausted trends where macro fundamentals no longer support the current price action.
How to Read the Indicator
Positive (Green/High): Strong macro tailwinds. Institutional accumulation and favorable liquidity conditions.
Negative (Red/Low): Macro headwinds. Liquidity withdrawal or credit stress.
The "Zero" Line: Acts as a pivot point. Crossing the zero line often signals a medium-to-long term change in market regime.
Disclaimer This indicator is for educational and research purposes only. It does not constitute financial advice. Past performance of macro correlations is not indicative of future results.
How it Works The index aggregates and normalizes several key pillars of market strength:
Liquidity Dynamics: Tracks M2 money supply trends and central bank liquidity pulses.
Credit & Yield Spreads: Monitors the yield curve and credit stress levels to gauge risk appetite.
Institutional Shadow Flow: Uses proprietary volume-weighting to identify where "Smart Money" is positioning relative to retail sentiment.
Insider Ratio Integration: Incorporates a calibrated baseline to filter out market noise.
Key Features
Dynamic Histogram: The color-coded bars represent the aggregate Macro Score.
Bullish/Bearish Divergence: Identify when the price is making new highs while the Sentinel Score is declining—a classic sign of institutional distribution.
Overbought/Oversold Thresholds: Helps identify exhausted trends where macro fundamentals no longer support the current price action.
How to Read the Indicator
Positive (Green/High): Strong macro tailwinds. Institutional accumulation and favorable liquidity conditions.
Negative (Red/Low): Macro headwinds. Liquidity withdrawal or credit stress.
The "Zero" Line: Acts as a pivot point. Crossing the zero line often signals a medium-to-long term change in market regime.
Disclaimer This indicator is for educational and research purposes only. It does not constitute financial advice. Past performance of macro correlations is not indicative of future results.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.