Risk On Vs. Risk Off

Key series such as the real wage and bank lending are still subdued enough that I am not yet
convinced the economic recovery is self-sustainable. So, I continue to watch the relative strength
of the SP 500 (SPY) against the long Treasury ($USB). A rising RSI for the SPY tells me that
investors continue to have confidence in the economy, while a falling RSI messages that confidence
has started to wain. The RSI for the SPY against the bond continues to advance, but the progress
is far enough along that investors are going to be watching their own calculations of risk on vs.
risk off more carefully going forward. SPY vs. Long Treas.