Yesterday the market was weak after lunch time even if, earlier in the day, the ISM number was strong. This suggests yesterday was more of a capitulation day than a break-out.
Judging by the big spike, the total put/call ratio also suggests the bears have given up:
With SPX 1270 touched, the expected spike in NYHL which is still showing weakness and the diverging 5 day EMA of the total put/call ratio reaching again the overbought level, the market looks ripe for a bigger correction. The employment report may mark this inflection point.
> NYHL (52 weeks New Highs - 52 weeks New Lows):
> 5 day EMA of the total put/call ratio:
3 comments:
Thanks for the update!
Are you going to short at this moment?
Tony
No, Tony.
While I think a correction is coming I am not sure it is the intermediate term top. The positive expectations for the December retail sales report may act like a magnet for buyers on any smaller correction until mid January.
Understood. Also, IMHO, I think we may not even see the correction(Large pullback). I think we may get suprise pull back in March or April.
Tony
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