2026-01-02 TACO Pressure Index Update: Low at 17.52

The index is designed to approximate how market stress can build pressure for a softer policy posture. On 2026-01-02, the score printed 17.52/100 in the low regime, with inflation expectations and equity signal doing most of the work.

Composite score17.52
RegimeLOW
Published2026-01-02

Policy pressure tracker for 2026-01-02: the TACO Pressure Index closed at 17.52/100, signaling a low pressure regime as inflation expectations and equity signal shaped the daily read. Read the charts, latest moves, and a concise market interpretation.

Pressure history

Composite score history

Trailing 80 sessions through 2026-01-02

Latest component scores

Bar chart of the latest component scores

Today’s component breakdown

Inflation expectations pressure

24.80/100

2.28% level, +4.00 bp vs 5 sessions 60% level + 40% change

Latest: 2.28 on 2026-01-02

Inflation pressure reflects both the breakeven level and any fresh 5-session rise.

S&P 500 equity signal

21.23/100

-1.06% vs 5 sessions | pressure 21.23 | relief 0.00 signed 5-session move

Latest: 6,858.47 on 2026-01-02

A 5-session drawdown adds pressure. A 5-session rally adds relief and can partially offset the composite score.

2Y Treasury rate pressure

12.53/100

3.47% level, +0.00 bp vs 5 sessions 60% level + 40% change

Latest: 3.47 on 2026-01-02

Rates pressure reflects both the current 2Y level and any fresh 5-session rise.

VIX volatility pressure

11.54/100

14.51 index level

Latest: 14.51 on 2026-01-02

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.