The Long/Short Volatility Barometer (LSVB) is a new indicator designed to measure market sentiment towards volatility by analyzing ETFs that either short or long volatility.

  • When the LSVB rises, it suggests that more traders are shorting volatility, which could be bullish for the S&P 500.
  • A falling LSVB indicates a preference for buying volatility, potentially signaling bearish sentiment.

This index is meant to be used alongside other tools, such as the VIX Term Structure, 1D Expected Move Indicator, and Net GEX Chart, to provide a comprehensive view of market sentiment and positioning.