Rare 1.1 print on US Equity Put:Call ratio

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Data provided by CBOE website. http://www.cboe.com/data/IntraDayVol.aspx

One of my favourite indicators with regards to providing a lead indicator for  a rise in the market, particularly when in an oversold situation, is the so called Put:Call ratio and more specifically, the equity only component. The print today of 1.1 is very rare and almost without fail coincides with a turn around in the stock market to the upside within days. In fact, I cannot recall a time where this has not proved to be an excellent bull/long trade indicator.

It is also interesting to see this level of put buying with the market close to all time highs – this is the sort of environment in which continued rise in the market occur.

This could be our smoke signal for a sharp rebound in spanish equities – a swing trade we have taken today.

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