Ark FCI Oscillator

Financial Conditions Index Oscillator

This indicator tracks week-over-week changes in the National Financial Conditions Index (NFCI), providing a dynamic view of evolving financial conditions in the United States.

Overview
The National Financial Conditions Index (NFCI) is a comprehensive weekly composite index published by the Federal Reserve Bank of Chicago. It measures financial conditions across U.S. money markets, debt and equity markets, and the traditional and shadow banking systems.
Interpretation

Positive values indicate improving financial conditions
Negative values signal deteriorating financial conditions

Risk assets demonstrate particular sensitivity to changes in financial conditions, making this oscillator valuable for market timing and risk assessment.

Alternative Data Source
Users can modify the source to FRED:NFCIRISK to focus specifically on risk dynamics. The NFCIRISK subindex isolates volatility and funding risk measures within the financial sector, capturing market volatility indicators and liquidity shortage probabilities while excluding broader credit and leverage conditions.