We've noted here before that the TED Spread tends to be rather effective in pointing out potential shifts in the market trend. Note the peak that the TED Spread hit in mid-September. Although the peak was not a perfect timing mechanism for a setback in the S&P 500, it did seem to foreshadow the decline we have seen in the past several trading days.
Lesson learned: Watch TED for a potential trend shift at TED extremes.
Today? Perhaps TED is telling us that the recent selloff is overdone. We will keep an eye on TED.