CPC Put/Call Ratio Daily Chart Signals Near-Term Top

The rare and odd market action continues. The CPC put/call ratio collapses to the uber low 0.64 continuing to signal rampant and out-of-control complacency and fearlessness in markets. The euphoria is off the charts. No one expect stocks to sell off ever again.

Especially odd is how the put/calls have remained low for the last seven weeks without stocks dropping. This is a head-scratcher and unprecedented behavior. The last bottom in stocks was marked by the 1.12 high print which is not high at all. Typically, you want to buy the stock market when the CPC moves above 1.20 which signals fear and panic in markets.

This behavior may hint that the drop will be substantial since it is pent-up and spring-loaded. Typically, when the CPC and CPCE put/call ratios drop to uber lows, the SPX will sell off about 40 to 80 handles then when the put/calls move higher showing fear, stocks recover and rally again. There has not been any significant selloff in stocks since the uber low put/calls began triggering in late November. This is strange. The expectation would be for a pullback of 40 to 150 handles in the SPX beginning in the days ahead.

The VIX is above the 200-day MA for six days running and stocks keep printing record highs. This is rare behavior.

This morning, US Treasury yields are moving higher while the US dollar index moves lower. The oddities in the markets are everywhere. Something likely has to give. The market bulls will win the game if they push the VIX below 10.83. Bears win if they keep the VIX above 10.83 and moving higher. 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.