CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts; Near-Term Bottom Approaching

Here is an update of the put/calls. The sentiment is panic and fear as evidenced by the higher put/calls and higher VIX now in the 20's. The higher volatility creates the wilder intraday and day to day price swings. As long as volatility remains elevated, the wild market moves will be a daily event.

The high put/calls continue hinting that a relief rally is on the come. S&P futures are up +22 as this is typed. That was a wild drop this week. The SPX collapses from 2942 to 2728, a big 214 points, -7.3%, in only six days. 

The rampant complacency in September into early this month created the market top and foretold the collapse. The SPX had the run of the mill pull back of 20 or 30 handles to begin this week, but that quickly led into the crash. Note the purple rising wedge pattern on the SPX that Keystone has highlighted too many times to recall. Now do you see how the collapses from rising wedges can be dramatic? That qualifies as dramatic.

The put/calls are indicating that a tradeable bottom is likely in play. The CPC is at levels not seen since the late June market bottom. The CPCE is at levels not seen since the February bottom which were the low prints of the year for the S&P 500.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.