Figure 4. Temporal evolution of the market state.

The horizontal axis represents the observation time and the vertical axis denotes the market state obtained from top-down clustering. The market state sometimes remains in the same state for a long time, and sometimes only for a short time. It also can return to a state that it has previously visited. Some states (e.g., state 1 and state 2) appear to cluster in time, while other states appear more sparsely and intermittently in time (e.g., state 4).