Chomp! Chomp!

Here's something you haven't seen in well over a year. While not fatal, one measure of over-blown sentiment is the 5-day moving average of the Equity only put-call-ratio ($CPCE).  The daily chart for the last year is below.

$CPCE - Daily - Five Day Average at 0.40

As you can see, buyers of calls have not been this bullish in over a year. Again, while this is not fatal for the market and may even persist a while, it does indicate that bullish investors have been gobbling up call options with abandon. Meanwhile the CNN Fear & Greed ratio is stuck in 'Neutral' because it has a mish-mosh of other (some non-sentiment) measures mixed in.

This indication should be considered a warning, and only a 'warning', as should be the McClellan Oscillator which was just in very over-bought territory of +300.

For our part on the EW front, we showed that on an hourly basis, we can still easily get a fourth and/or fifth wave higher (see chart at this LINK). This can happen, but it does not have to based on current wave options (i.e. like a ⓑ or an ⓧ wave at the high).

Have an excellent rest of the weekend.

TraderJoe