As you know, I keep a close eye on the relationship between the Bank Index and the S&P. The one thing I have learned over the years is that there is no timing to this indicator. It is simply a sign of the health of the financials relative to the S&P. I have never seen it not eventually matter, but "eventually" can be a long time!

Let's look at the chart of this ratio dating back to the heady days of the late '90s.

The red arrow is the late summer of 1999. Do you think anyone cared that the financials couldn't rally? No way. Who needed Bank of America (BAC - commentary - Cramer's Take) if you could have Qualcomm (QCOM - commentary - Cramer's Take)?

I have shown this chart before and noted that the spike low in the ratio came on March 10, 2000, the exact day Nasdaq made its high. I can remember discussing this relationship many times in late 2006 and early 2007 as it slid ever lower. No one cared. Who needed Citigroup (C - commentary - Cramer's Take) if you could have Google (GOOG - commentary - Cramer's Take) (blue arrow)?

But as we know now, it did matter -- eventually. It mattered on March 10 of the year 2000 and for the next three years, and it mattered in the summer of 2007.

A market can survive on the upside for only so long without the benefit of the financials. So now let's take a look at a close-up of this ratio's chart; if you squint, you can see we broke to a lower low again last week.

I can't say when it will matter. But I think from a historical perspective we know that the negative relationship can't continue indefinitely without eventually taking its toll on the market as a whole.

Another chart that caught my eye this weekend was a chart printed each week in Barron's. It is a market sentiment chart from Citigroup titled "Panic/Euphoria Model." I have glanced at this chart for years, and I always wonder why it never gets to "euphoric." I do not know exactly how it is computed (it has a variety of inputs), but what I find fascinating is that this chart is now kissing the euphoric level.

Aside from the fact that it is the only sentiment chart I have that is truly at an extreme, I am also amazed that it is the highest I have ever seen it and surely much loftier than it was at the October highs.

If I couple this with the reading of 225% on the equity-only ISE call/put ratio from Friday, I would have to agree there is a certain amount of giddiness out there now that didn't exist a week ago.

Exactly one week ago, I cited a headline I'd read about the coming week's action -- "Stocks headed for troubled waters from oil and consumption woes" -- and as you now know, last week was anything but troubled waters. Of course, this week that same news service carries a headline that reads "U.S. stocks seek to continue advance, in spite of oil surge."

This of course is anecdotal evidence that folks are getting giddy; the Citigroup euphoria and the ISE equity call/put ratio are not.

Overbought/Oversold Oscillators

For more explanation of these indicators, check out The Chartist's primer.