Libor has turned down significantly over the past few months, from a high of 0.35 to a low of 0.26 presently.
What is particularly interesting is that RSI has gone to an extremely low reading of 1.77%. At the same time MACD seems to be turning up. The last time the 12 day average crossed the 26 day average was back in March, and Libor spiked upward.
Remember May/June 2008? The last time the 12 day MACD crossed the 26 day MACD a steady grinding down of the market was triggered as the TED spread rose.
There seems to be an eerie similarity presently to the May/June 2008 event now that TED is on the rise again.
Does this mean we are only a few weeks away from another major downturn in the markets?