These are charts of 2011 SPX and Total Put/Call - for comparison
According to online experts - A High put call ratio is a sign that the market is overSold and a Low put call ratio indicates that the market is overBought and extreme conditions could see a price correction.
However; I think Put/Call ratio (regardless of high/low number) is best used when it is aligned with other extreme readings – such as an oversold/overbought Stoch. Also; put/call by itself is Not a buy/sell signal but an Alert that we are at Extremes and a change is coming.
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