I went back and drew up another five years of lower boundary rebounds on the Equity Put Call Ratio for a total of 10 years and the results are (for 2005 through Feb 2014 following the rebound):
23 total rebounds 18 times SPX traded lower during the rebound 4 times SPX traded flat, then made another leg up which created a top that lasted at least 6 months 1 time only did SPX trade flat and then decline
This would seem to suggest that we should expect one more leg higher before a meaningful top could be in. The law of small numbers applies here though, so this is food for thought, but hard to draw any strong conclusions from at this time. 7/20/14
23 total rebounds
18 times SPX traded lower during the rebound
4 times SPX traded flat, then made another leg up which created a top that lasted at least 6 months
1 time only did SPX trade flat and then decline
This would seem to suggest that we should expect one more leg higher before a meaningful top could be in. The law of small numbers applies here though, so this is food for thought, but hard to draw any strong conclusions from at this time. 7/20/14