Timing Market Turns Using SPX and BXM

Roger Nusbaum submits: OK, hopefully I can get the attribution right on this. Bill Luby at Vix and More has a post that studies a possible timing tool using a ratio of the S&P 500 and the BuyWrite Index (BXM). Basically when it gets to 1.80 -- the S&P 500 turns down -- the chart is Bill's too.

I found out about this from the Daily Options Report, and Adam weighs in with a little more on the subject too.

The utility to something like this helps to create better understanding of market dynamics. There are relationships between different markets that have varying levels of importance, but to the extent that we learn from them -- all the better.