CPC and CPCE Put/Call Ratios and SPX S&P 500 Daily Charts; Rampant Fear and Panic Signals Significant Bottom at Hand

The stock market is completely engulfed in fear and panic. S&P futures are down over -30 points on Sunday evening to begin the new week of trading. Traders are screaming bloody murder and the baby is thrown out with the bathwater, and the sink. The latest meme is that something broke in the market. Did it? Maybe.

Stocks may crash further if UTIL loses 976. If UTIL can hold 976, the bulls should mount a relief rally.

The put/call ratios have not been this high since the mayhem at the start of the pandemic that started the long 2-year stock market rally. The United States remains mired in a bear market but is due for a snap-back rally.

Are you ready for a 1,000-point up day on the Dow? No, because you loaded the boat short, didn't you? Well, in that case you would definitely be in bad shape for a 2,000-point rally in the days ahead. If UTIL holds 976, it would be prudent to start shedding shorts and bringing on longs.

A relief rally may be quite spectacular since everybody and his brother is short the stock market and the last bear left town last week. There may be an epic short-covering rally in the week ahead. The put/calls are ready for stocks to make a comeback beginning any day forward. 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.

Note Added Monday Morning, 9/26/22, at 4:20 AM EST: S&P futures go positive a short time ago with a 40-point turn around overnight but slump to down -15 points again. It is an interesting week ahead since everyone is universally short the market and the fear and panic is at multi-year peaks. Run towards the burning stock market building while everyone else is running away. Make sure UTIL does not lose that 976 level; it is key. Trouble continues if UTIL slips below 976 but a green light for bulls will likely occur if UTIL remains above 976 this week.

Note Added Monday Morning, 9/26/22, at 5:50 AM EST: Futures deteriorate to down -34 points. VIX rises to 32.84.

Note Added Monday Morning, 9/26/22, at 6:20 AM EST: S&P futures -29 points. VIX 32.55.

Note Added Tuesday Morning, 9/27/22, at 8:00 AM EST: UTIL lost 976 out of the gate yesterday so the trap-door opened. Stocks wanted to rally, and did rally on the positive side, but with the trap-door open, equities kept falling through and the session deteriorated. UTIL finishes at 953 and bulls need this back above 976 as soon as possible. The SPX finishes down 38 points, -1.0%, to 3655. S&P futures are up +50 points currently with the VIX under 31. The beat goes on.

Note Added Tuesday Evening, 9/27/22, at 6:26 PM EST: Same-o, same-o. Stocks threw a big party at the opening bell but then fell on their sword because utilities refused to join the festivities. UTIL collapses to 934 a dangerous market signal. Stocks need UTIL above 976 and/or VIX below 25.45 to confirm a substantive rally. Utilities are plummeting because yields are moving higher. A stock market rally will not have oomph unless utes are rallying and volatility is dropping. Do you think a knock-your-socks off rally is about to begin at any time? Watch UTIL 954 into the Friday close. If UTIL regains 954 before the week ends, the bulls will likely rally stocks next week. If UTIL struggles this week and cannot get above 954 by Friday at 4 PM EST, this is massive trouble and the US stock market will be in a major crash profile with a historic downdraft  and carnage in the offing. The former outcome is expected (UTIL above 954) but the week will have to play out.

Note Added Wednesday Morning, 10/5/22, at 8:45 AM EST: The US stock market stages the biggest 2-day rally in 2-1/2 years. The SPX jumps from 3584 on Friday, 9/30/22,  to 3792 yesterday, a gain of 208 big points, +5.8%. The Dow leaps from 28715 on Friday 9/30/22, to 30325 yesterday, a gain of 1610 points,  +5.6%. Of course it did.