The Same Signal That Preceded 2000, 2008, and 2011 Just Triggered Again

From Gains, Pains & Capital

Everything changed in the market’s structure in the last two weeks. Specifically, the spread between the NYSE (old economy) and the new economy (the NASDAQ) surpassed 11% (meaning the NYSE is up 11% vs. the NASDAQ since the latter’s peak).

Historically, in the context of raging bullish sentiment (more on this shortly), a spread of this magnitude between the NYSE and NASDAQ has resulted in a MAJOR top. This was the case in 2000, 2008 and in 2011.

By the way, the spread is currently over 13%.