CPC Put/Call Ratio Daily Chart

We have been watching this chart over the last month as it was signaling a significant market top was in place. The markets are in sell mode so we shall see how much oomph the bears can bring to the table.  Watch to see if a similar fractal plays out as compared to the early May period.  The spring market sell off started late April and early May (at 0.75 CPC) where markets tumbled lower until the 1.45 CPC print occurred. The SPX dropped from 1420 to 1295, 125 handles.  Then the CPC dropped from 1.45 to the 0.9's, which is bull-friendly movement (the CPC chart above moves inversely to the markets), which corresponded to the late May pop from SPX 1295 up to 1335. Then the CPC spiked again from 0.93 to 1.37 as June started. This marked the exact bottom in the markets at SPX 1270.  The high CPC readings, above 1.20, is when the hand wringing begins and traders start to become increasingly worried and panicked. And, that always signals a market bottom.  This market is likely not worth buying long until you see the CPC print above 1.20 which will show that stocks are beaten down to acceptable levels to give the long side a go again. Until the plus 1.20 number occurs, the broad indexes should continue lower. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.