Before getting into that indicator and chart, let me repeat portions of what Buffett had to say about housing.

FORBES: Housing's Stagnation Doesn't Bode Well For Equities

Now, back to that indicator and chart.

FORBES: Housing's Stagnation Doesn't Bode Well For Equities

Market technician Arthur Hill on Stockcharts.com notes some exceptionally rare oversold readings on the SPY chart on an indicator called the commodity channel index (CCI).

FORBES: Looking For The Pony In The Market's Dung Heap

We hired computer programmers to basically take my ideas and historically plot them on a chart, and we developed this indicator over several years.

FORBES: Use the RCI to Gauge Market Strength

It showed an expansion in orders, unlike the Chicago report, and the chart suggests it may be a leading indicator for the Chicago PMI.

FORBES: The Week Ahead: Be a Smart Buyer

The blue lines on the chart above represent the Bollinger bands, and below the bar chart, I have plotted the band width indicator.

FORBES: Gain an Edge with Volatility Analysis