Investor Sentiment Check

Despite only a two day rally, and with the markets pretty much flat today, measures of investor anxiety are again running high.

The ISE Sentiment Index opened at a new low of 74, and has been running below 100 all day. This indicates continued put buying, as few options players are willing to be on a further rally.

At the CBOE, the put/call ratio opened at 1.12, and has been running above the 1.0 level all day. This is another confirmation of the elevated levels of pessimism prevailing in the markets.

I suspect that after some consolidating, the markets will make another push higher and cause the bears additional pain.
'