Below are two charts showing centered around CPCE the Put/Call Ratio. On Thursday the CPCE hit .79 with the VIX below 20. The charts below indicate other times when this has happened. The .79 CPCE is not a high number at all but in looking at it with a low VIX it is. What the charts show is that the market has a tendency to rally when CPCE is at .79.
The chart also shows that the CPCE will climb higher before the market bottoms when VIX climbs higher. This means whats VIX and the market, if VIX rallys above 17.84 a resistance level, there could be additional downside, if not and we see VIX settling back down the market may be bottoming. Feel free to discuss.