This was taken by David Padgett in Evergreen, AL around Oct. 15, 2009. If you look close you will see a traditional rainbow in the clouds. It was a sunny day and no rain.
Editors note: This is called a circumzenith(al) arc. It is formed by refraction, like a rainbow, except it occurs in ice crystals overhead in the direction of the sun. A rainbow occurs in raindrops in the opposite direction of the sun