Options Sentiment: Historical Perspective

The rally that started in October last year has made everyone a bull. The equity put / call ratio (its 20d MA) is now at the level seen only 4 other times in the last 16 years. There are two conclusions: 1) odds of a correction are growing with every tick higher, 2) every correction led to higher prices eventually.

SPX and the Equity Put / Call Ratio (20d MA)

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