To The Moon

And this is the third reason why a bounce on Friday was possible.

This is an indicator used in technical analysis to gauge market sentiment.

Ratio > 1: This indicates that more put options are being traded compared to call options. An extreme bearish sentiment in the market, this works as a contrarian indicator.

It reached 0.8 on Thursday, below 1, but trading is about analyzing the current context, and the spike was relevant considering all 2024.

Is this error proof? No, the green circles show bullish outcomes (working as contrarian indicator), the red ones bearish continuation in $S&P 500(.SPX)$ and yellow ones a delayed bullish outcome for SP500.

I have posted this indicator a couple of times, as I do with the McClellan Oscillator.

So, McClellan Oscillator + $DJIA(.DJI)$ Oversold + Equity Put/Call Ratio ended up anticipating well the bounce.

The deep fall on Friday Morning made me doubt, but I made it up to my audience posting the reversal at 1:30PM, even better than Thursday Afternoon.

Is this sustainable? I'll share more thoughts on this later today with the weekly, depending on how many likes and reposts this post gets.

$SPDR S&P 500 ETF Trust(SPY)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$ $Vanguard Total Stock Market ETF(VTI)$ $Cboe Volatility Index(VIX)$ $Financial Select Sector SPDR Fund(XLF)$ $Technology Select Sector SPDR Fund(XLK)$ $Utilities Select Sector SPDR Fund(XLU)$

Image

https://x.com/SmartReversals/status/1797253678992151017