SPX S&P 500, CPC and CPCE Put/Call Ratio Daily Charts

The low put/call ratios in July foretold trouble ahead for stocks, in this short term basis, and the SPX  tumbles from the 2491 record intraday spike high to 2437 in 3-1/2 days; 54 S&P handles from the high to the low; -2.2%.

The red circles identify the stock market tops due to the complacency verified by the low put/calls. The green circles indicate fear and panic where short-term tradeable bottoms occur. Note that the CPCE rockets to 0.94 with traders running to buy put protection worried about a big drop in the stock market. This is off the charts bearishness and likely leads to the relief rally on tap this Monday morning when trading begins for the week.

The CPC put/call, however, is not showing fear and panic instead it is more of the same-o, same-o. This may hint that a jog move is on tap where a relief rally occurs for stocks for a day or two then prices fall again for a day or two. Perhaps at that time the CPC would show fear and panic. The picture is mixed. Despite the elevated CPCE, it may be a bit premature to start heralding the upside in stocks again. The CPC will need to show far more fear and panic. 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.