Reversal In Investor Sentiment

After the bullish open, the investor sentiment indicators have rolled over and are now flashing heightened pessimism, or fear.

The CBOE put/call ratio opened at a fairly low 0.73, but has since climbed to a lofty 0.98. Moreover, the 10-day average of this indicator topped 1.0 last week for the first time since Sept. 06.

The ISEE opened at a very high 200, but has since plunged below 100 to 93. This is the equivalent of a put/call of 1.07, a highly bearish reading.

I believe investors continue to rush out and buy downside protection at every little pullback in the averages. Until this behavior changes, I continue to feel that corrections will be brief and shallow.