The ratio is closely watched because as Ferrarone notes it shows a high degree of correlation to the year-over-year change in the OECD leading indicators, which in turn closely corresponds to market returns.
The record high level of fear and low level of bullishness near the March low last year was a big factor in having us watching the oversold conditions and our momentum reversal indicators, which in turn allowed us to move from 70% cash to 70% invested within one day of the low.
"At times, Chuck showed encouraging indicators of a possible recovery, but his health took a decided turn, and he went to be with the Lord, " said the statement on his Website.