I wasn’t going to bother with the “Fed Spread” because there’s nothing particularly insightful about it. Indeed, I’m going to drop my “every Thursday” pledge because it’s only useful if there is in fact a big “spread” between the two. As it is now, the S&P is pretty much where it “should” be from a liquidity perspective (this is normally a premium post, but this time I’m showing everyone).
In fact, the calculated “should be” value on the S&P is 3733, and today we closed at 3734. In other words, the monster chasm from mid-August is long gone, and now we’re at the mercy of actual facts, such as the jobs number tomorrow morning.
