I am going to add the National Financial Conditions Index (NFCI) and the Adjusted National Financial Index (NFCI) to my list of things I monitor.
I don't have the energy right now to explain these indexes but I have been thinking about them for quite awhile. FLOW vs. LEVEL. These indexes don't really have the ability to time a negative financial event. But their trend can alter you to pay attention.
Above zero is bad and below zero is good. The NFCI is looking pretty good with a bit of a (bad) up movement.
The adjusted index is adjusted for economic conditions. Again, above zero is bad and this chart is showing that monetary policy is tight for existing economic conditions. I wonder what this index will do if the Fed raises rates.
There is more than one sub-index. I like the leverage sub-index as one that while volatile has some meaning for me. Above zero means deleveraging. At this time the recent data is volatile but within the historic volatility. I am not sure I can perceive a short term trend here.