Info!! Intraday Put/Call Ratios Equally Short-Term Thought Measures

my recent ship service on the CBOE equity put/call ratio, you'll buy the farm a feel for what an average ratio has looked similar lately.

Those ratios, however, tin sack every bit good hold upwardly informative on an intraday basis.

Here nosotros come across Friday's merchandise inward the S&P 500 Index (SPY; bluish line) plotted against the CBOE equity put/call ratio for each 30-minute catamenia of the day. Note how a real high degree of bearishness accompanied the early on marketplace action, every bit nosotros held to a higher house the overnight marketplace high in addition to thus rebounded inward the afternoon. Note every bit good how the ratio turned bullish every bit nosotros leveled off belatedly inward the trading day.

While at that spot isn't a one-to-one correspondence betwixt tops in addition to bottoms inward the put/call ratio in addition to bottoms in addition to tops inward stocks, the ratio does create a prissy labor of telling us when the bull or behavior sides are becoming crowded. Those are occasions where we're nearly probable to come across short-term reversals.
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