I received some feedback about this indicator and I want to clear up something. First, an indicator is just a tool for measuring something.
Your gas gauge in your car can indicate when you're low on fuel.. that's helpful. That's very similar to what this is. But what it can't do is predict where the next gas station is. The market can signal weakness through this indicator but we don't know if the fed will pump it (gas station) more or let it coast.. and even cool off.
The best advice I can give is this- use many indicators. Look for divergences in the market. Look at the VIX. Study put:call ratios, look at this indicator, look at market volume, etc..
just like you use many gauges in your car when navigating on a road trip, you must do the same in trading.. constantly work with the road ahead... You don't need to know everything.