The put/call ratio has been doing a good job keeping me from going long on Monday. Indeed there was no important "bearish spike". Also, while the market has been moving lower, the ratio has reached levels more consistent with an end of a multi-day move up:
Since I am still expecting an important move up to accompany a bounce in economic activity and there is no sign of a bottom yet, I will continue to stay out.
The chart below is a 30min spx chart for the June - today period:
The red boxes highlight previous continuous down moves. They all have been about 60-70 points in length. This would put spx at 1040 before we can see some significant upside
2 comments:
Adi,
Good call,thanks.
I regret not checking your blog earlier this morning.
Thank you, ciscochen.
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