Put/Call Ratio May Indicate a Bottom

[Steven Vincent]

The Put/Call Ratio may be indicating that a short or intermediate term bottom is in place. We have seen two spikes to extreme levels beyond 1.2, the first of which resulted in an intraday reversal to a positive close and it appears that the same may happen today. Also, the 14 day moving average has breached the .95 area for the first time since the bull market began in March of 2009.

Relative strength in big cap financials is also worthy of note.