From Pragmatic Capitalism:

Back in May 2011, I introduced Chart In Focus readers to the leading indication that I get from looking at Commitment of Traders (COT) data on eurodollar futures. Since then (and also before) readers of our twice-monthly McClellan Market Report newsletter and Daily Edition have appreciated getting to see this relationship on a more frequent basis.

For almost a year, we have known that a top was due to arrive in February 2012. And sure enough, stock prices have been rising nicely in recent weeks as fulfillment of that expectation.

Now this leading indication says that things are going to get less fun for investors for a while. The next three months show a sideways to downward structure in the eurodollar COT data, and the implication is that the steep price advance that we have been seeing should transition to a more sideways market. That's great if one can...

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