rest of the week , page-31

Intuition

In the whole 2007/9 decline we didn't see consistent discounts like this until Feb 2009.

In fact late 2008 saw mostly premiums which ensured further decline.

The indicator is the middle lower one as a historgram.

Even if you at Aug 2008 that sent us sideways for a while, while June/Jul 2009 made sure the correction wouldn't last.

This behaviour is consistent with SPI behaviour since its inception in 1983.

So I don't believe this indicates a continued sell off UNLESS SPI starts making premiums not discounts.