Figure 1 is a daily chart of the S&P500. The indicator in the lower panel measures the ratio of the amount of assets in the Rydex bullish and leveraged funds relative to those funds that are bearish and leveraged.
Figure 1. S&P500/ daily/ Rydex Bullish and Leveraged v. Bearish and Leveraged
The current value of the indicator stands at 0.89 suggesting that the Rydex market timers are bearish, and this is a bullish signal. See the recent strategy piece on how this signal is combined with the 200 day moving average.
Lastly, it appears likely that I will be seeking "donations" from readers to support the research and time that goes into this blog. In return for your financial support, I will provide you a value added thank you, and it will be similar to the Rydex charts that can be downloaded at this link.
More to follow!