What Is The Current Market Sentiment?
The VIX was down significantly on the week to 12. The CBOE Total P/C ratio fell as well (see chart below). The 8 day EMA has crossed below the 18 day EMA on $CPC indicating that fear is subsiding and we are entering a period which will be bullish for stocks. This rising greed level will support our current Buy signal. In the NDX/SPX ratio on the next page, it appears that this ratio is turning higher after a recent 1-month dip. This would be bullish for the NDX and the broader market as the Nasdaq tech stocks lead the market higher. But don’t get too far ahead of this market. This ratio could turn negative quickly so it “bears” watching on a daily basis. At the first sign of the ratio turning negative, I will be looking for the exits and the next trend leg south. 6 Month Daily CBOE Total Put/Call Ratio 2 Year NDX/SPX Ratio Where Do We Go From Here and How To Listen For the Next Signal? With a bit of luck and maybe some decline in oil prices, we may continue this rally for another coupl
