Date: December 2012: derivatives-SPX12-12.gif (545×399)

The first overlays bank derivatives with positive fair value against the S&P 500 (SPX), lagged 28 months. Is it cricket to lag or advance indicators? Technician Tom McClellanthinks so, as his forward-12-months eurodollar COT/SPX chart has been eerily prescient in forecasting major market moves in 2012.