Investor Sentiment Check

Measures of investor anxiety are running around average levels, with some exceptions.

The ARMS index is still high. One of my colleagues told me the 3-day ARMS is as high as it was back in July. This is indicative of the bears trying to press their bets, imo.

The CBOE put/call ratio is running around average levels at 0.82.

The ISEE is still below average at 135. The 50-day moving average of this indicator is now down to 111.

Tomorrow is options expiration. Many times the market experiences a post-options expiration hangover in the following week. But I continue to believe that any pullback will be minor, and that this market will not give an ideal opportunity for bears to cover or for underinvested managers to deploy cash.
'