Early Look At Sentiment

As I mentioned earlier, my fear guages are really spiking this morning.

The ARMS index is surging. My quotes show it as high as 3.84, which is a very high level.

Also, the volatility index (VIX) is gapping above its 50-day today, and has been as much as +17% higher so far.

As for the put/call ratios, similar extreme readings are present. In particular, the CBOE put/call ratio is running at 1.67, as high as I can remember it. The ISEE is also at a very low level of 112, after closing at 96 yesterday.

The SPX is currently -2.0% off its high, and the COMP is -2.9% off its highs. I suspect that this correction could have more to go over the next few weeks, but I don't believe we will see more than a 3-5% correction.