Here's something interesting. I was just checking up on the equity put/call ratio and saw that it had returned from the complacency low to above the mid-line so I looked back and marked areas where this had happened in the past (since about mid-2009/2010ish).
There were 13 instances and 11 of them all decent pullbacks. In only 2 of those instances, price basically traded flat. Both of those instances resulted in a final leg higher before setting virtual highs for the next 6-12 months.
Law of small numbers in effect here, but food for thought nonetheless. 7/19/14
Of course the reason I bring it up is because price has traded very flat during this ratio rebound. Could it turn out the same? One more decent leg up before taking a rest for 6-12 months? 7/19/14
There were 13 instances and 11 of them all decent pullbacks. In only 2 of those instances, price basically traded flat. Both of those instances resulted in a final leg higher before setting virtual highs for the next 6-12 months.
Law of small numbers in effect here, but food for thought nonetheless. 7/19/14