Schaeffer's Research has a table showing returns after the spread reached 40%. It did so twice in 1987, weeks of 1/16 and 8/14. Unfortunately he does not mention how high it went after that.
Interesting tables. Like so many indicators, it appears 40-plus is bullish at the beginning of bull runs, and bearish in the end of bull markets. So is this, as the Doors would have it, THE END?
Not a very precise read although in retrospect it appears to be close. Also...hmm...more than 40% on the spread and "seven" ceases to be a lucky number.
Good luck and good trading.
P.S. Also I suspect when a trader and market player as savy as NAV begins to wonder about these things he alone may be a better sentiment indicator than any of this stuff. Just my two cents...
Edited by diogenes227, 01 November 2017 - 10:39 AM.
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