CBOE Skew and SPX S&P 500 Daily Charts

The CBOE Skew is elevated again. On the daily basis, the red circles show tops in the stock market so it appears prudent to tread softly on the long side going forward while bringing on some shorts and buying put protection. The 150 level is off the charts. The candlestick chart shows a long and strong MACD line that would like to see another price high but the Skew readings are ominous.

The Skew should be respected since its track record is 100% for identifying the tops as the charts indicate. The Skew signals that the stock market will likely print a top any day forward. 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.

Note: Chart is courtesy of Big Charts annotated by Keystone.