CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts; Significant Near-Term Market Bottom At Hand; Big Near-Term Stock Market Relief Rally Ahead

The selling was intense today, Monday, 12/17/18, with the SPX dumping 54 points after dumping 50 on Friday. Traders are screaming bloody murder. Uncle Frank, that invested his entire retirement fund in Apple and Amazon, cashed out taking losses and said he will never own a stock ever again. Cousin Nell had to be talked off the ledge at the flower club meeting after she found out her retirement fund is now a shadow of what it used to be. Even the "Ole Blue-Hair's," a famous octogenarian investment group, decided to sell all their stock, their pacemakers can no longer take the daily volatility.

There is blood in the streets. There is mayhem, carnage, panic and fear. Traders are buying puts hand over fist for protection. They run into gold for safety and also buy Treasuries. The CPCE put/call ratio leaps to 0.97 at levels not seen since November 2016. Well look at that. Back then, the SPX rallied about 200 points over the next three months.

The CPC spikes to 1.37 not seen since the stock market bottom earlier this year. The green circles show key stock market bottoms nearly all led to sharp, quick, upward thrusts in the S&P 500. The panic and fear is off the charts so 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 in the near-term. 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.