As long as the T Theory™ Confidence Index is rising, the stock market should be fine. We know from history that the Confidence Index usually puts in its final top before stocks do, such that bearish divergence should develop between the S&P and the Confidence Index at the final S&P top
Derived from Terry Laundry’s FAGIX:VUSTX complacency indicator. Whenever the ratio is above its 89-day SMA, risk is in vogue: a bullmarket. A ratio below the SMA indicates people are adopting an aversion for risk.
