Investor Sentiment Check

The markets are taking it on the chin this afternoon. Bond yields are spiking 5 basis points to 4.78%, and oil is rising to the $60 level. Also, negative comments out of Micron (MU) today weighed on the tech sector.

I am starting to see the sentiment indicators pick up, and reflect heightened levels of fear. Here is a quick snapshot:

• The volatility indexes are spiking +8-10% today
• The ARMS Index is around average at 1.12
• The CBOE put/call ratio is high at 1.03
• The ISEE is also high, at the equivalent of 0.97

Given the tight trading range I mentioned in my opening post, this move is not that surprising. I mentioned that whichever way we broke out, we could get an exaggerated move. The brokers are down the most, and its hard to make any headway without them providing leadership.