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TED Spread Indicator Chart
This chart shows the TED Spread, in relation to the S&P 500. The TED (T-Bill, 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 A rising TED spread is a bearish indicator, as it is evidence that liquidity is being withdrawn from the financial markets.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.