FYI: Back in December , we pointed to the exchange-traded fund (ETF) market’s optimistic signals about stocks. It looks like the spread between the SPDR S&P 500 ETF (NYSE Arca: SPY) and the iShares S&P 100 ETF (NYSE Arca: OEF) has cleared resistance on its way to a longer-term technical objective at $144. The SPY-OEF spread is an indicator of investors’ exuberance for stocks—widening as risk tolerance expands, contracting as punters pull back. Dips in the spread’s momentum, evidenced by crossovers of its 50-day and 200-day moving averages, are early warnings of broad market weakness.
Regards,
Ted
http://www.wealthmanagement.com/print/76730