2025-12-31 TACO Pressure Index Update: Low at 19.04
This custom framework combines equities, front-end rates, inflation expectations, and volatility into one daily score. On 2025-12-31, the score printed 19.04/100 in the low regime, with equity signal and inflation expectations doing most of the work.
Policy pressure tracker for 2025-12-31: the TACO Pressure Index closed at 19.04/100, signaling a low pressure regime as equity signal and inflation expectations shaped the daily read. Read the charts, latest moves, and a concise market interpretation.
Pressure history
Composite score history
Trailing 4 sessions through 2025-12-31
Latest component scores
Today’s component breakdown
S&P 500 equity signal
24.37/100
A 5-session drawdown adds pressure. A 5-session rally adds relief and can partially offset the composite score.
Inflation expectations pressure
23.60/100
Inflation pressure reflects both the breakeven level and any fresh 5-session rise.
2Y Treasury rate pressure
14.13/100
Rates pressure reflects both the current 2Y level and any fresh 5-session rise.
VIX volatility pressure
14.04/100
Higher implied volatility usually means greater market stress.
Method in one paragraph
The TACO Pressure Index converts four live market inputs into comparable component scores and combines them into one composite reading. The equity leg is symmetric: 5-session drawdowns add pressure, while 5-session rallies add relief and can partially offset the total score. Rates, inflation, and volatility still combine a level component with a 5-session change component before the final result is grouped into LOW, ELEVATED, HIGH, and EXTREME regimes.