I posted the Nasdaq 100 vs. SPX index on Oct. 19th, going back 3 years, and posited that it was evidence that the market had put in a major top. Here is another chart that offers supporting evidence that the S&P 500 put in a major top:
It is a bit hard to read, but it shows the SPY / IWM ratio over the last 3 years. Generally, periods of risk-on have involved the IWM (small caps) outperforming the SPY (large caps). I’ve written about this ratio before. Interestingly, the ratio bottomed in the spring of 2011, and now trades at a level similar to the fall of 2011, when the SPX was around 1100-1200.
In other words, the risk appetite of major fund managers is much lower than where the overall level of the SPX index would indicate. It might be another long-term sign to hunker down the hatches.