CPCE Put/Call Ratio and SPX S&P 500 Daily Charts; Continued Complacency Signals Near-Term Top

The CPC put/call ratio printed an uber low number and now the CPCE comes down again as well. The low put/calls continue for the last six weeks. This is very odd behavior. Typically, the stock market would have already started selling off and heading lower. The market joy is euphoric and the bullish momentum is strong.

Traders are complacent and fearless without any worry about stocks selling off. That is when stocks sell off. The last tradeable bottom was August and that rally continues into today. Now is the time to exit the longs and bring on the shorts. Do not go long until the CPCE moves up to that 0.80 level and blood is flowing in the streets.

The SPX daily chart is setting up with negative divergence and probably will top out over the coming days say Friday through Wednesday. This outcome would gel nicely with the low put/call ratios and rampant complacency. Once the S&P 500 begins retreating a drop of from 30 to 80 handles and maybe a lot more is likely. 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.