Just after the SPX 3/23/18 bottom I posted that there were many bullish signal indicating a bottom could be in place.
I also noted that the strongest signal came from the CBOE Put/Call ratio.
Note on this chart that whenever the Put/Call ratio decisively exceeded the 1.40 level it was a great time to go long the SPX.
I think there's a very high probability the 3/23/18 signal could also be a great time to go long the SPX.
You must expand your horizon beyond just price pattern analysis. There are four market dimensions that must be studied; Price, Time, Momentum, and Sentiment.
For the US stock market Sentiment in the form of the Put/Call ratio is very bullish.
In the Time dimension the US stock market is seasonally bullish into May.
A powerful sentiment signal in a bullish time period strongly implies rising US stock priced for the next several weeks.
My next post will have my updated long term forecast for the US stock market.
Mark
I also noted that the strongest signal came from the CBOE Put/Call ratio.
Note on this chart that whenever the Put/Call ratio decisively exceeded the 1.40 level it was a great time to go long the SPX.
I think there's a very high probability the 3/23/18 signal could also be a great time to go long the SPX.
You must expand your horizon beyond just price pattern analysis. There are four market dimensions that must be studied; Price, Time, Momentum, and Sentiment.
For the US stock market Sentiment in the form of the Put/Call ratio is very bullish.
In the Time dimension the US stock market is seasonally bullish into May.
A powerful sentiment signal in a bullish time period strongly implies rising US stock priced for the next several weeks.
My next post will have my updated long term forecast for the US stock market.
Mark