The put/calls are at lows verifying the stock market complacency. The bulls were throwing darts at the stock pages yesterday buying stocks without a care or worry. Everyone expects ECB President Draghi to coo dovishly in a couple hours creating stock market joy. The central bankers are the market. The Federal Reserve Rate Decision and Chairman Bernanke Press Conference is next Wednesday, 9/18/19.
The red circles show complacency. The wine is flowing like water. Traders are singing songs and carryin' on, every day is a party, no one is worried about a pullback in stocks. Well, that is when it happens. Conversely, the green circles show panic and fear. The baby, bathwater and the sink are all thrown out the window as stocks drop. Traders are panicking and fearful about what the next day brings. The blood is flowing in the streets. Of course, that is exactly when the bottom occurs and stocks begin a rally.
What do you think will happen in the days ahead? Remember, the SPX daily chart is not yet fully negatively diverged across all indicators so it may take a few days, say next week, for the top to appear, on a daily basis, unless Draghi makes a major monetary policy error this morning. 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.
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