The analysis done here shows extreme complacency in the market which is indicating a top could be forming. When everyone is bullish you have to be worried.
Yesterday's spike in the CBOE Put/Call Ratio brings it closer to the spikes seen during Covid fall and the December '22 bottom. This is a sign of extreme panic and we could be very near to the bottom in US Equities.
SPX as of 4th Oct closing = 4263.76
All in the video, I cover a few of the sectors and point out this area has been tough resistance for the market in the past. Noone seems to be expecting more problems with the banks, which to me is sort of strange as we don't know the full fall out yet.
Good luck tomorrow - FOMC at 2pm and 2:30 press conference!
DESCRIPTION: In the chart above I have included an overlapping analysis of PCC which is a PUT TO CALL RATIO INDICATOR & QQQ a LEADING INDEX in the OVERALL MARKET.
POINTS:
1. A PUT TO CALL RATIO LEVEL OF 2:1 HAS ALWAYS BEEN INDICATIVE THAT A MARKET BOTTOM IS NEARING OR IN.
2. MACD is has officially shown a complete flip in buying to selling pressure by touching...
The put/call ratio is at extreme levels which is reflecting a very pessimistic sentiment in the market. Typically, this indicator is to be used as a contrarian signal which means some sort of a major bottom could be forming over the next couple weeks.
I have an alert for when the 10-day moving average falls below .8. The PCC spends most of its time between.8 and 1 when the 10 moving average falls below .8 you can count on a bearish reversal in the market. As of right now, we are above that with plenty of room. The reason why I bring this up now is that if we mid-term rally I'm looking for a strong bull push...
This is another stock index long-term analysis and this time our focus is on the Nasdaq (NDX). For better illustration we are displaying the Nasdaq as a line instead of candles (black trend-line) and the Put/ Call Ratio (blue trend-line) on the 1W time-frame.
First let's explain what this ratio is. Basically it is the number of put options divided by the number...
this is another reason to think maybe there is some rebound in the works in index futures. puts have let off steam, and the general direction at this peak level is calls to return for indices futures.
Very interesting chart showing Put/Call ratio peaks above 1.0 which was plotted after watching a game of trades video. Has a high probability at indicating a bottom.
put/call ratio cboe has hit the top of the band, entered short amd then trended toward the bottom band hit the top and then averaged out indicating there may be a peak of call activity followed by a return to heavy puts
Wanted to get this posted for anyone who's got active trades open... particularly long positions.
$PCC above 1 is generally bearish, below 1 is generally bullish.... basically showing volume of Puts & Calls traded.
With Put trading spiking like this, extreme caution should be taken with tight stops.
ROCs exploded once again.
Hopefully, this is squeezed hard off a further Extreme reading.
OR
It's off to 2.0ish as HappyCloud Suggested might happen...
www.tradingview.com
We're going to fail, but a FULL REVERSAL prior to failure... whopsawed,
but in tot he BUZZSAW again.
I'd count on it that whipsaw.
13.% looks to be in the offing for the next decline.
Liquidity within Leveraged products was used to provide
a bid for the Underlying on Gamma/Delta.
With the overall decline in participation, we are seeing
Micro Range Squeezes develop when it is "Time".
Friday's trade was a run to Square, and with the Retail
Options players levered up in 420 Spy Calls... there was no
chance they would be paid.
The PCC remains...
put call ratio is showing a daily period of distribution in put spread that could end up being bullish for the broader market
we have hit descending TRAMA and AO has turned negative so the trend is toward call
Reliability has been a Solid Guide, accurate in the Extreme...
One exception remains the Higher end of the Range remains
open for a far Higher High.
Friday's Expiry was an excellent example of a PCC Squeeze
as rising from 1.1876 to 1.274 was an indication of Price having
a clear potential to run to close.
It...
Observe VIX today, it will provide the indications.
Globex squeeze for ES arrives on time again.
Make or break Week.
Only 1 time in market history did we see 7 weeks
of down.
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Bulls need a bunch today.
It's FUF.
