CPC Put/Call Ratio and SPX S&P 500 Daily Charts; Complacency and Bullish Euphoria Lingers Indicating a Top Any Day

The ongoing complacency, bullish euphoria and fearlessness is evidenced by the low put/call ratios and is historic behavior. The off the charts complacency and lack of any worry that any downside will ever occur in stocks is special; like the dotcom bubble in 1999-2000 and the real estate bubble 2008-2009. It has the same feel. After many weeks and months, we are at this euphoric high as if the walls of the room were just painted with airplane glue. She's gonna be a doozy.

You should have planned for a big pullback already with Keystone beating this dead horse for a while. A buddy years ago was a trucker and he had a delivery at a rendering plant (the proverbial glue factory). He was hung over from a late night of drinking and not feeling well. A plant that is processing dead animal carcasses gives off the most putrid smell; it is nasty. So he is starting to smell this sickening odor and still does not know which loading dock to back the rig into and sees a man sitting over yonder eating lunch.

He decides to run over there and ask the man where to back his rig, unload, and get out of there as fast as possible. As he walks up to the guy he realizes he is sitting on a dead horse, and his lunch bucket is open and sitting on the carcass. There are flies around and the man looks up with part of his tuna fish sandwich dripping from his chin. The poor dude saw that and blew his cookies right there and could not stop puking. He looked up as he was dry-heaving and saw the guy sitting on the dead horse laughing his arse off. The trucker buddy said he did not feel right for 2 days after that.

Anyhoo, be warned. If you are new to trading, get out. Sit and watch over the next couple months. Maybe a Black Friday tomorrow? What do you think? You are ready for an event like that, aren't you? If stocks fall apart tomorrow, watch the utilities. If UTIL, or DJU, loses 1067, it is lights out, and that would pave the way for a potential Black Friday, or Black Monday, and crash ahead. It's going to be a lot of fun over the coming days and weeks.

The bears may mean business. The previous charts show the neggie d in play so the smackdowns are in progress and should have legs lower for a few weeks. Remember yesterday, price came up for a back kiss of the 50-day MA at 6837, and bounced, so it jumped to touch and back test the 20-day MA at 6913. It fell back to close midway between the 20 and 50. Then today, the SPX puts its big boy pants on and jumps to the 20-day at the opening bell and higher, but only to retreat again. Price sits on the 20 and will make a bounce or die decision from 6913 in the morning. S&P futures are slightly negative on Thursday evening on the East Coast.

Price did not have to come back up because the neggie d should begin slapping price hard to the downside without mercy. The bears may mean business this time because they came up to fill that large gap from the Tuesday collapse. Now the SPX has no need to come back up at all going forward. If you are not ready for the big pullback, you are going to receive your head on a platter. Only You, And You Alone, can prepare for the downfall that is knocking at your front door right now. The Platters. 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.