S&P 500 Market Regime Analysis: Using VIX/VIXEQ Ratios S&P 500SP:SPXHenriqueCentieiroThe VIX/VIXEQ Regime Detector is an innovative indicator that correlates the volatility of the S&P 500 VIX with the volatility of the equally weighted S&P 500 $CBOE:VIXEQ. This relationship provides crucial insights into market structure and helps identify regime changes that often precede significant corrections. The indicator compares two distinct volatility measures: VIX: Measures volatility of the market-cap weighted S&P 500 SPX (heavily concentrated in MAG 7 and large caps) VIX EQ: Measures implied volatility of the equally weighted S&P 500 (equal weight to all 500 companies) By analyzing the ratio between these volatility indices, we can detect stress at the constituent level that may not yet be reflected in the headline index. Historical analysis reveals a strong correlation between elevated VIX EQ/VIX ratios and subsequent market corrections: When the ratio spikes significantly, the S&P 500 has historically experienced corrections ranging from 5% to 20% Multiple instances show this pattern repeating across different market cycles The indicator helps identify breakdown of correlations and increased market stress before they fully materialize in major indices Current Market Status As of now, the indicator shows we are in a concentration regime (ratio under 2.0), suggesting a lower risk market environment with volatility in the equally weighted index remaining relatively close to the headline VIX.