From All Star Charts:

By now, I think everyone has had the opportunity to see that U.S. stocks are outperforming emerging market stocks. This has been going on since early in the fall of 2010. It's not a secret. But the action in the $EEM:SPY ratio over the last couple of months tells me that something could be changing.

I am not an "oscillator junkie" by any means. In other words, I don’t look at 20 indicators and wait for them all to align perfectly before making trading decisions. I'm more of a keep-it-simple-stupid kind of guy.

The relative strength index is really the only oscillator that I follow on a daily basis. Even though price is the only thing that pays, and is still the priority, I always consult my 14-period RSI before making trades.

We are now coming off the most extreme oversold reading in the history of the $EEM:$SPY ratio (it goes back to 2003). But more importantly, the ratio just...

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