Friday, December 22, 2006

Investor Sentiment Check

The market is still under heavy selling pressure. Investor sentiment measures are flashing elevated bearishness intra-day.

  • The CBOE put/call ratio is very high at 1.18
  • The ARMS Index is above-average at 1.29
  • The ISEE is plunging to 73 (or the put/call equivalent of 1.37)

Those are very high put/call readings, which could help the market bottom soon and reverse higher next week. It seems that investors are already buying puts ahead of an expected January correction.


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