CPC Put/Call Ratio Daily Chart

The CPC put/call agrees with the NYAD in that a market bounce is very close. The red circle shows the uber low reading, at the 0.70 level, indicating a high level of bullishness, the call buying is rampant and the wine is flowing like water, remember the ongoing party as the July summer fun lived on? Then, whammo. Readings around 0.70 indicate market tops while readings above 1.20 signal that the selling is out of hand and a market bottom is at hand. The chart shows August bottoms, then the late September-early October bottom that started the strong bull rally.

The circles in November show market bottoms that occurred. The last one at that 1.40 was very short-lived, only amounting to a one-day market pop, then the downside resumed, six straight days of market downside, to bring us to today. At 1.29, the CPC is well above Keystone's magical 1.2 line.

The projection is that markets will bounce from the 1.29 to 1.40 circle, which would correspond to today, or early next week, today or Monday most likely. This is simply a market pop to remedy the uber bearishness shown now by the high CPC, so any long side play must be a very short term nimble trade, in and out to simply ride the pop. 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.