TED Spread ChartThis chart shows the TED Spread, in relation to the S&P 500. The TED (Tbill EuroDollar) Spread is the difference between the LIBOR (London Interbank Offered Rate) and the 3 Month Treasury Bill. The LIBOR is Europe's equivalent to the United States' Federal Funds Rate. A rising TED spread is a bearish indicator, as it is evidence that liquidity is being withdrawn from the financial markets. A high TED Spread indicates higher perceived risk in lending, as interbank rates rise against risk-free treasury rates, and is generally a bearish signal, a leading indicator, in market timing systems.
( HINT: Click-and-drag left-to-right on the top chart (S&P 500) to zoom in to a specific date range. Double-click on S&P 500 chart to zoom back out. )