After reviewing four put/call ratios and their performance this year in picking tops, the two clear winners are the CBOE Total put/call and the dollar weighted equity put/call. The CBOE total gave three signals and all were good. The dollar weighted gave the same three signals plus caught the top in early August that the CBOE total missed. However, it did give two additional signals that were more like resting points.
The dollar weighted equity put/call gave a sell signal at the close yesterday and the CBOE total will likely give one today at the close or in the coming few days. In most instances when these sell signals occurred the market was maximum overbought. That will not happen until the close on Monday. Still, it does not seem like a time when one should throw caution to the wind like most are doing.