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Sentiment Signal Facing Off With Technical Risk

Sentiment Signal Facing Off With Technical Risk

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“On the sentiment front, we have noted during the past few weeks that negative sentiment among short-term traders is at levels that have coincided with major troughs during the past few years. But one concern that I have is that after buy-to-open put/call volume ratios on both SPX and Nasdaq 100 Index (NDX — 14,009.54) components peaked near the end of January, these indices are slightly below the levels they were at when their respective ratios peaked. This is not normal and potentially indicative of longer-term investors overwhelming traders who bought the dips a few weeks ago.”

...read full article on Schaeffers Research

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