Okay, you get the award!
They're called "circumzenithal arcs/rainbows" and happen when the sun is low in the sky, in the morning or evening. I've just never seen one and there weren't any clouds.
It's also odd because they are normally right over the sun but this was mid-sky, right overhead. They actually do call them "smiles."
It was just such a cool thing to happen. I'm still giggling about it.
Annie
http://www.wisegeek.com/what-is-a-ci...nithal-arc.htm
And while I hate referring to Wikipedia . . .
http://en.wikipedia.org/wiki/Circumzenithal_arc