The Clues

Below are graphs of the ISE and CBOE equity only 10 day moving averages. As you can see both are in areas that have previously led to selloffs.



The put/call ratios are lining up for a top with two caveats. The first is that they still can go higher through the end of the week as I explained in a post yesterday. The second is that the overall CBOE put/call ratio is not in extreme territory. This is strange as I have found that the overall CBOE put/call reading and the equity only generally line up. As you can see in the chart below the last 2 times we saw extreme readings on the equity only the overall reading was also extreme.

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