Rally Alert

Rally Alert

The CBOE Put/Call Ratio is at 1.74 ($PCall on TOS), a level associated with the March 2020 Covid Panic low, And exceeding every peak since then. Given that we are in the 80-day cycle trough, a short-covering rally might materialize soon. CNN Fear/Greed Sentiment has also returned to the “Fear” Mode.

I cannot say how long the rally would last, but it could run a few days into year-end, per the Master Cycle forecast, and 3800 has been providing solid support for now.

I am not saying buy or sell, nor do we have a buy signal yet, but the put/call ratio at these levels usually signifies that an intermediate low is near.

A.F. Thornton

AF Thornton

Website: https://tradingarchimedes.com

A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.

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