CPC and CPCE Put/Call Ratio Daily Charts; Significant Near-Term Market Bottom At Hand; Big Near-Term Stock Market Relief Rally Ahead

Here is another look at the put/calls. The selling on Monday occurs on steady negative news bites. The SPX hourly and daily charts continue setting up with positive divergence wanting to bounce but the gloom and doom news bites, and Powell harpooning the stock market yesterday afternoon, sends stocks lower.

There is blood in the streets. There is mayhem, carnage, panic and fear. One trader screams , "The world is going to end." Traders are buying puts like madmen for protection. The smell of capitulation is in the air. Investors are flocking into gold for safety and also buy Treasuries. The CPCE put/call ratio leaps to 0.97 at levels not seen since November 2016, then drops back to 0.69, then spikes back up to 0.85 yesterday. The doom and gloom is off the charts so a big upside rally should begin at any time.

The CPC spikes to 1.37 not seen since the stock market bottom earlier this year, then retreats slighly to 1.10 then spikes back up to 1.20 yesterday. The panic and fear is rampant. You know what happens when investors give up all hope that stocks will ever go up again; yep, right when everyone gives up, that is when stocks recover.

Expect a strong relief rally to begin any minute, any hour any day forward. The pop will likely be from 80 to 200 SPX handles into January. Take profits in your shorts immediately. Begin scaling into longs (for VST trading) to ride the pending relief rally set to start in the near-term. 4-1/2 hours before the Thursday opening bell for the regular trading session, S&P futures are down -5. Two hours ago, the spoo's were down -14. The Russell small cap futures are sneaking positive. 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.