Note: Usually when the SPY has a correction of 5% or greater the Rydex ratio falls by a minimum of 30%. Although the current correction from the SPY high on 09/18 is only about 3%, the Rydex ratio has changed very little from that date. Suggests that the average retail trader is not very nervous about this (mild) correction. Note that IWM is off 7% since its high in September. If the market sells off a little more from here I would want to see some sign of fear from this indicator before looking for a price a low.
