Calendar Spread

 

A good sentiment indicator in the past has been the Calendar Spread . This is the premium spread of the two nearby S&P 500 futures contracts (for instance the difference between the June SP and September SP contracts on a 5- day moving average). It shows if futures traders are extremely bearish or bullish. When speculation peaked in June 2000 and everybody was bullish, this indicator was as high as 23!

 
 

TechnicalAnalysisSite.com - Calendar Spread

 

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Past performance does not guarantee future results!
 
   
 


The Financial Ad Trader
The Financial Ad Trader