NASI, SPX & Baltic Dry Index

There was a link on the Oil Trader Blog to the top chart today. The author suggested that the Baltic Dry Index (BDI) led the SPX 2 green arrows at base of chart) and when the BDI crossed down through the SPX, the latter went down. The middle chart utilizes Cycle Lines (in blue) to demonstrate that the BDI (solid black line) really lags the SPX (dashed red & black line), but may have different extremes of peaks & nadirs. The BDI bottomed out in November 2008 even more than the NDX. The latter lends further support that November 2008 was the beginning of the bear market rally (analogous to April 1938). The bottom chart suggests that nasty up-leg Downticks and Complex NASI Tops can be sometimes be avoided by switching longs into the BDI (first two dark green boxes). The BDI functions like a simple version of Sekou Span Lines in Ichimoku Clouds.