SPX S&P 500, CPC and CPCE Put/Call Ratios Daily Charts; Panic and Fear Finally Starting to Appear

After a drop in the SPX from 7K to 6624, a nearly 4 hundo point loss, -5.5%, panic and fear is finally starting to appear in the stock market. Sometimes people do not believe so you have to shove it down their throats until they gag on it. Then they believe. The stock market complacency and uber bullishness was a constant theme late last year into this year. This was proven by the low put/call ratios (red circles).

When the year started, there was a tinge of fear with some traders worried about a repeat of the prior year when stocks fell after everyone proclaimed nothing but upside ahead a la Irving Fisher in 1929. That spike in panic and fear created the rally shown by the green bar on the SPX chart. That rally was a run from a bottom at 6824 to 6985 let's call it a 160 points.

Thus, mathematicians say thus a lot, that is why Keystone was not invited to the spring cotillion this Friday, the start of year fractal may repeat now. That would create a rally from 6624 to 6784 if it follows the previous fractal.

Thus, tread carefully if short since a relief rally is likely at hand. As previously explained, the hourly and daily SPX charts are encouraging for a relief rally due to the positive divergence, and a couple chart indicators on the weekly chart agree with, and will help create, that buoyancy. However, indicators on the SPX weekly chart remain weak and bleak so lower lows in SPX price are desired going forward on the weekly basis.

Thus, Keystone has to work on his thus's if he wants invited to the April Fool's Day bash at the Amvets Club, stocks will likely stage a relief rally bounce over the coming days but weakness should reappear a week or two out. Any trades depend on your time frames. If you are willing to hold your shorts for a while and endure a relief rally, that may be strong, pay no mind since the additional weakness ahead in the weekly time frame will take care of that trade in the future.

If a shorter term trader, take some profits on shorts and flip them long but you must be nimble if playing long and keep close attention. The Iran War is not going well and things may go to Hell in a handbasket at anytime. King Donnie Chump, that started a major world war, now is telling Iran and Israel to deescalate. Trumpski is in a mess and in way over his orange head. Donnie threatens everyone daily and the bloviations from the 80-year old showman have less of an impact. Iran plans to keep attacking ignoring Trumpski's words. Chump started a war that he can no longer control or finish.

For today and the next few days, however, be alert to a relief rally starting. When the Whip Comes Down. There is no cooler guitar player than Keith Richards. Humorously, at this point, the drugs and alcohol is what keeps him alive. 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.