Another Dangerous Sentiment Indicator as ES (SPX) Sports Another Positive Pre-Market

As stock market futures climb yet again this morning, we review another dangerous sentiment indicator, the Equity Put/Call Ratio

Of course it won’t matter until it matters, but with the punch drunk holiday party in full swing here is another dangerous sentiment indicator for your consideration. I am short absolutely nothing other than a couple of minor precious metals hedges (which will be pressured today).

This is a weekly chart that normally appears in NFTRH’s Market Sentiment segment. I’ve added SPX in the lower panel for visual effect of what extremes to the upside and downside by the CPCE’s 10 week EMA have meant for stocks in the past. Take a moment, check out the red and green shaded areas and associated vertical dotted lines and well, don’t over-react, but do have your eyes wide open.

I think that legions of Robinhood type kids are in this market making coin and old fashioned fuddy duddys like myself need not produce dour charts like this lest we be tuned out. So be it.

equity put/call ratio

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