CPC and CPCE Put/Call Ratios Daily Charts Signal Uber Complacency and Near-Term Top At Hand

The CPC and CPCE put/call ratios are at uber low levels signaling rampant market complacency. Today, the bulls rally stocks on the Powell Rally and happy tax bill talk. Banks are strong. Investors believe that central bankers will always save the day so there is no reason to take on downside protection, hence the low put/call ratios.

When the market is complacent, that is when it peaks and rolls over so that would be expected ahead in this daily time frame. The near-term top should occur at anytime any day forward. The pull back will probably be from 20 to 80 handles in the SPX and if it gains steam to the downside maybe more.

The SPX 2-hour chart posted on the weekend kept going higher and not printing universal negative divergence as yet. The RSI and MACD line has to roll over to place the top so that may take from 2 to 5 more candlesticks which is 4 to 10 hours; say, tomorrow or Thursday for the potential top that would gel together with the need for a top due to the low put/calls. 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.