The 10-Day Put/Call Ratio just climbed above 1.0 for the first time since March 2020. The ratio shows extreme fear (bullish) and raises the risk of a short-covering rally that could bring us to the bottom of this first corrective leg.
So far, the market is finding support on the Weekly Expected Move low at 4277 but resistance at the hourly mean around 4322.
I am already long some SPY calls at 4281 that I will hold for a swing trade and a couple of futures contracts at 4299 with 5 point stops. I want to accumulate the calls slowly as we might still see a flush today. Let’s see how it goes, it could be a long day.