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Market Risk Classifier · Event Risk Brief · 2025-005

Concluded · 2025-06-202025-06-18 · inputs through 2025-06-17 closeLive report →
What happened · scored by what the market did next
✓ The scare faded

The system classified STABLE and the scare passed: no escalation and no hard fall followed.

The Call

STABLE (WATCH) was in effect. VIX was up 27% in five sessions; the call did not move.

Volatility jumped this week; the system classifies it as not a regime change.

RISK SHAPE
WHIPSAW
WHIPSAWSHIFTINGELEVATEDSHOCKCRISIS
WHAT THE SYSTEM DID
HELD THROUGH IT
the system classifying STABLE while VIX rises 25%+ in a week
LAST 20 SESSIONS · VIX (ORANGE) + S&P 500 (WHITE)
STABLETRIGGER WINDOW · LAST 5 SESSIONS22.316.8VIX6,0455,803S&P05/2006/0306/17
VIX · CBOE VOLATILITY INDEX
21.60
5-SESSION CHANGE +27.4%
S&P 500
5,982.72
5-SESSION CHANGE -0.9%
CONCLUDES WHEN EITHER · 3 CONDITIONS+
(a) The system escalates to a more severe state (escalated).(b) VIX's 5-session change falls back below +25% with no escalation (the scare faded).(c) No escalation within 10 sessions and the S&P 500 falls 5%+ within 20 sessions (the call was wrong).

Classification uses the prior session close (2025-06-17).

Historical Precedent51 MATCHES SINCE 2012
QUERY: risk shape == STABLE (WATCH) AND VIX 5-session change >= +25% · 3,385 SESSIONS SINCE 2012 · 51 MATCHES
MEDIAN PATH · 51 MATCHES · INDEXED TO 100 AT THE MATCHED MORNING
TRIGGER WINDOWTHE MATCHED MORNING · TODAY'S POSITION10077VIX102.2100.0S&P−20 SESSIONS0+15 SESSIONS

Median forward path of all 51 matched mornings. Historical pattern, not a forecast.

94%
THE SYSTEM CLASSIFIED STABLE CORRECTLY OR ESCALATED WITHIN DAYS · 48 OF 51 MATCHES
6%
THE SYSTEM WAS WRONG · CLASSIFIED STABLE THROUGH A 5%+ S&P 500 FALL · 3 MORNINGS: 2014-09 · 2015-07 · 2022-04
HISTORICAL MARKET CLASSIFICATION OUTCOMES
67%
27%
6%
34 OF 51The scare faded. The system classified STABLE and no hard fall followed
14 OF 51The system escalated within days. It issued a more severe classification within 10 trading sessions
3 OF 51The system was wrong. It classified STABLE while the S&P 500 fell 5% or more within 20 sessions: 2014-09 · 2015-07 · 2022-04
↳ CLOSEST MATCHES TO TODAY · PRIOR-CLOSE VIX < 22 (TODAY: 21.60) · 44 OF THE 51+
31 OF 44The scare faded.
11 OF 44The system escalated within days.
2 OF 44The system was wrong. 2014-09 · 2015-07

Free · issued pre-open when conditions warrant

Event Log1 SESSION
2025-06-18 · DAY 1 · STABLE · VIX 21.60 (+27.4%) · SPX 5,982.72 (-0.9%)
Sector ImplicationsTAP TO EXPAND +

10-DAY FORWARD RETURN VS STABLE PERIODS · STRESS-CLASSIFIED DAYS

CYCLICAL BASKET

+1.9pp

XLE · XLB · XLF · XLI · XLY

DEFENSIVE BASKET

-0.5pp

XLV · XLP · XLU

10-DAY FORWARD RETURN DIFFERENTIAL BY SECTOR (STRESS VS STABLE)

XLEEnergy
+2.9pp
XLFFinancials
+2.7pp
XLBMaterials
+1.7pp
XLKTechnology
+1.7pp
XLIIndustrials
+1.2pp
XLYConsumer Disc.
+0.9pp
XLUUtilities
+0.6pp
XLPStaples
-0.6pp
XLVHealthcare
-1.5pp
Sector returns measured from the classification date forward. Backtest: 2012-2024, 154 stress-classified days. Out-of-sample: 2025-2026, 24 stress-classified days. Historical analysis, not investment advice.

This report is preserved at its permanent address · the live report continues every trading morning →

Outcome definitions, system methodology, and the full classification record

Validation & Methods →

Historical base rates since 2012: history, not a forecast. Past classifications do not guarantee future accuracy. Research use only. Mindforge is not a registered investment adviser. Full terms: mindforge.tech/terms · Methodology: mindforge.tech/validation-and-methods

Research use only. Not investment advice. Past performance ≠ future results. Mindforge is not a registered investment adviser. Full terms · Methods

Event Risk Brief 2025-005 | Mindforge | Mindforge