GUIDE
The Viktor Protocol dashboard sums up daily market conditions for SPY and QQQ on one screen. This guide walks through it step by step, so you can read it in under five minutes.
The stage is the headline. It describes where the market sits in its cycle right now. Markets rarely go from strong to weak overnight, so conditions usually change in steps. The stage tells you which step the model reads today.
| Stage | Name | What it describes |
|---|---|---|
| 1 | Broad uptrend | Price is above its long-term trend and most stocks are taking part. |
| 2 | Narrowing participation | The index is near its highs, but fewer stocks are joining in. |
| 3 | Weakening internals | Participation has stayed weak for weeks. The trend is still up, but the foundation is thinner. |
| 4 | Trend breakdown | Price has broken its long-term trend, confirmed on the weekly chart. |
| 5 | Downtrend | Price is below its long-term trend and rallies are fading. |
| 6 | Downtrend losing force | Selling pressure is easing and key averages are being reclaimed. |
| 7 | Early recovery | Price is recovering, but the new uptrend hasn't proven itself yet. |
| 8 | Uptrend restored | The long-term trend is confirmed up again, and the cycle starts over. |
Stages often follow this order, but markets don't always take a neat path. A stage can be brief or skipped.
Each reading answers one simple question about the market and shows a status: Clear means that area looks healthy, Watch means it's showing some weakness, and Stress means it's clearly under pressure.
| Reading | The question it answers | Clear | Watch | Stress |
|---|---|---|---|---|
| Trend | Is the market above or below its long-term trend? | Holding above its long-term trend | Losing strength | Below its long-term trend, confirmed on the weekly chart |
| Market breadth | Are most stocks taking part? | Most stocks are taking part | Fewer stocks are joining in | Participation has stayed weak for weeks |
| Credit conditions | Is the bond market calm? | Bond markets are calm | Some caution is showing | Bond markets are showing stress |
| Choppiness | Is the market trending or drifting sideways? | Trending | Weak trend, drifting | Range-bound |
Trend is the foundation. It shows whether the index is above or below its long-term average, checked against the weekly chart so one rough day doesn't flip it.
Breadth shows how many stocks are taking part. When an index sits near its highs while fewer stocks join in, the move is resting on a narrower base.
The bond market can show investor caution, for example when money moves from riskier bonds to safer ones. This reading watches for that kind of stress.
A choppy market moves back and forth without a clear direction. This reading separates a real trend from sideways drift.
The risk backdrop sums up the overall environment in one word. It describes current conditions, not the chance of a gain or loss.
| Tier | What it means |
|---|---|
| Low | Most readings are healthy and the backdrop is supportive. |
| Moderate | Readings are mixed. |
| Elevated | Several readings are weak. |
| High | Weakness or stress is broad. |
Reading agreement shows how many readings point the same way. High means they line up, Moderate means one points a different way, and Low means they're split. Low agreement can appear when conditions are changing between stages. It is not a probability of any outcome.
Flags highlight two conditions that can appear at any stage: Credit stress (strain in the bond market) and Choppy conditions (range-bound, directionless price action). If no flags are active, the dashboard shows None.
SPY tracks the S&P 500. QQQ tracks the Nasdaq-100, which is more concentrated in technology. The two behave differently, so each is read with its own calibrated rules. One difference to know: the QQQ model doesn't use the credit layer, because tech-heavy swings trigger bond-market stress readings too often. On QQQ, credit conditions are shown for context only and marked Context only.
Readings update after each US market close on trading days. They don't change during the day, and the dashboard is not a real-time feed. Each dashboard shows a Last updated time. If an update is late, you'll see a notice. Don't rely on readings until they refresh. You can check the System Status page any time.
The stage is Narrowing participation. The long-term trend is still up, but fewer stocks are joining in.
Trend, credit and choppiness are Clear. Market breadth is Watch. That one reading is what puts the market in stage 2.
Most readings are healthy, so the backdrop is Moderate rather than Low.
Agreement is Moderate because breadth points a different way from trend.
Stage 2, Narrowing participation: the long-term trend is still up, but fewer stocks are joining in, so the backdrop is Moderate.
The dashboard describes these conditions. What you do with that information is up to you.
| Reading | Stage 1 | Stage 2 |
|---|---|---|
| Stage | Broad uptrend | Narrowing participation |
| Market breadth | Clear | Watch |
| Risk backdrop | Low | Moderate |
| Agreement | High | Moderate |
| Trend / Credit / Choppiness | Clear | Clear |
Day to day, what changes matters more than any single reading.
A stage describes today's conditions. It doesn't predict what the market will do next.
Each reading is one part of the picture. The stage and backdrop show how they fit together.
The readings describe SPY and QQQ as a whole. They aren't designed for single stocks.
Always check the Last updated time. If an update is late, wait for it to refresh.
Readings change only after the close. Moves during the day won't show until the next update.
Written by Viktor Protocol editorial team. Reviewed by Editorial reviewer.
Last updated October 20, 2026; last reviewed October 20, 2026.
We review this guide every quarter and whenever the dashboard changes. Read our Editorial Standards.
This guide is educational. Viktor Protocol provides general market information from a rules-based model. It is not investment advice, isn't tailored to you, and readings can be wrong. Consider speaking with a licensed financial professional before making investment decisions.