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Monday, May 20, 2013 10:34:16 AM
The Equity Put/Call Ratio Suggests Complacency
By Maurice N. Walker
* Sunday, May 19, 2013
Two very important charts
The put/call ratio has moved to extremes once again. Hovering near levels where we saw the last correction back in September of 2012. That would hint that the next reversal will be corrective in nature rather than just a pullback. The pullbacks since the November low have been holding up near the 50-day MA. Should a correction begin, the S&P 500 will need to move below it's 50-day MA and break the rising trendline.
The second chart below shows the weekly chart of the S&P 500 closing above it's upper Bollinger Band and tagging the upper boundary of the mature rising price channel that has been in place since the 2009 bottom.
http://thechartpatterntrader.com/
George.
Click on "In reply to", for Authors past commentaries.
By Maurice N. Walker
* Sunday, May 19, 2013
Two very important charts
The put/call ratio has moved to extremes once again. Hovering near levels where we saw the last correction back in September of 2012. That would hint that the next reversal will be corrective in nature rather than just a pullback. The pullbacks since the November low have been holding up near the 50-day MA. Should a correction begin, the S&P 500 will need to move below it's 50-day MA and break the rising trendline.
The second chart below shows the weekly chart of the S&P 500 closing above it's upper Bollinger Band and tagging the upper boundary of the mature rising price channel that has been in place since the 2009 bottom.
http://thechartpatterntrader.com/
George.
Click on "In reply to", for Authors past commentaries.
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