The SPX CBOE Put/Call Equity ratio
The CBOE Put/Call Equity ratio measures the volume of put options traded relative to call options on equity securities. It's a sentiment indicator used by traders to gauge market sentiment and investor behavior.
When the CPCE ratio is below 0.5, as by Friday close, it indicates a bullish sentiment among investors, indicating that there are significantly more call options being traded than put options. This could imply that investors are optimistic about future price movements in the market.
However, extreme levels, such as a ratio below 0.5, can also signal overconfidence, which may precede a market decline. See the previous occurrences in the chart, some🟢had neutral continuation, others🔵were followed by significant declines.
It's essential to consider this indicator alongside other factors and market conditions. SIX indicators are key to monitor next week, they're described in the latest weekly compass 👇.
Like💚for more updates of CPCE
$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $iShares Russell 2000 ETF(IWM)$
Image
https://twitter.com/SmartReversals/status/1842709356770460102
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
