In the chart below, the curve has already begun to fall back toward its trend line. If nonfarm payroll numbers disappoint this week, look for this pair to fall more and the curve to flatten considerably.
The last chart is of Guggenheim S&P 500 Equal Weight (RSP) over SPDR S&P 500 (SPY). This pair represents market breadth in the S&P 500, the level of participation during equity index moves. As the pair rises, it signals that a majority of the stocks in the index are moving higher as well.
U.S. equities remain the most attractive stocks in the world , which means that if equity markets as an asset class move higher, this pair should lead the way.Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.