Trend day or range day
Kereon's 0–100% read of whether today is a one-way trend day or a back-and-forth range day for the S&P 500 fund (SPY) and the stocks behind it.
A trend day pins the price to one end of its range, travels far against its own normal daily range, holds away from VWAP and keeps breadth lopsided all session. A range day does none of those. The tile averages five such inputs into one conviction score — what is often called a trend/chop score.
Formula
Score = mean of the available inputs, each clipped to 0–1
Inputs
- Position in the day's range. |range position − 0.5| × 2: 1 at the day's high or low, 0 in the middle (SPY).
- Move against its own ATR. |today's % change| ÷ ATR % (SPY).
- Distance held from VWAP. |distance from VWAP %| ÷ (½ × ATR %) (SPY).
- Breadth conviction. |% of desk stocks advancing − 50| ÷ 35.
- Names holding one side of VWAP. |% of desk stocks above VWAP − 50| ÷ 40.
How to read it
62% and above reads Trend day — up when SPY is more than 0.05% higher, down when more than 0.05% lower. 35% and below reads Range / chop. In between: Mixed — no clean read. An Inside day flag appears when today's high and low both sit inside yesterday's.
How to use it
A high reading favors continuation: moves tend to keep going and fading them is expensive. A low reading favors rotation inside the range — selling strength and buying weakness near the edges. Check it before choosing between a breakout and a mean-reversion approach.
Limitations
Unreliable before the opening range has formed, when one large print moves every input. It reads SPY and the desk's own list of stocks, not the whole exchange.
In Kereon
Market · Pulse. Recomputed with every desk snapshot from SPY's regular-hours bars (range position, VWAP) and its 14-day ATR, plus the desk's breadth. A missing input leaves the average rather than counting as zero. Each ATR divisor has a floor of 0.05%.
Also called: trend/chop score, trend chop score, chop score, day type, trend day, range day, range / chop, inside day, conviction.