CPCE CBOE Put/Call Ratio Daily Chart

The CPCE put/call ratio surprisingly drops to 0.55. Traders were buying calls like madmen yesterday all looking for a strong rally; today they all get slapped in the face with S&P futures down -30 or more. The red circles show complacency and no fear or worry which creates near-term tops in stocks. Interestingly, the CPC put/call did not come down to the uber bullish complacency low like the CPCE. Typically, both the CPC and CPCE will signal the same so markets may remain choppy sideways for a couple days until the CPC and CPCE sync up with both showing high levels or both showing low levels so a clear path forward can be projected. 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.