The 10-day chart of CBOE put/call ratios shows that there is yet to be the extreme fear common at important market lows. In fact there are five lows in the past 15 months with higher put/call numbers than the current reading.
- 10-day CBOE put/call ratio 15 Sep ‘08
click chart to enlarge
It’s time to show the Tricks Index. I look for two events to signal a low on the index; first the index should get into the vicinity of the lower bollinger band and then the index should make a higher low while price makes a lower low. Right now, the index isn’t anywhere near the lower band. Notice how volatility in the index has brought the bands to their widest span in recent months. It looks like plenty of room on the downside from here!
- Tricks Index 15 Sep ‘08
click chart to enlarge
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