The Accrued Interest blog, an expert blog mainly dedicated to the fixed-income markets, offers this very cogent analysis of the stock market and its future from an intermarket point of view. Oddly enough, he is of the opinion that the stock market is in for a very big selloff as usually happens within a year or so after corporate bond spreads explode. The big question is: has the meltdown already started? Even though we've seen some pretty big down days already this nascent year, I believe we need to see the August lows taken out decisively (on a weekly basis and/or on respectable volume) to start waxing poetic about bears. Positioning oneself for just such an event (if one isn't already) would be prudent.
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