Fighting The Rally For All Its Worth

Yesterday I commented on the high level of put buying, and how it would likely support the market on any dip. It is surprising to see that much put buying when the market is rallying, but it seems investors remained more worried about a selloff than missing further upside.

Today, I am seeing the same thing. The market dipped this morning, and it looked good for the bears, but the Nazz has climbed all the way back into positive territory, and the SPX has gotten close.

As for the put/call ratios, the CBOE is still trading at the extremely high level of 1.22. That is the kind of reading you get on a huge down day, not one like today.

And the ISEE is trading at the equivalent of 0.90, which is a very high reading for that index. In my book, this means that until the options herd turns unanimously bullish, dips can continue to be bought successfully.