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Strategies & Market Trends : Investor sentiment surveys - a technical indicator

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To: FIFO_kid2 who wrote (121)10/31/1997 9:03:00 AM
From: Q.  Read Replies (1) of 167
 
put/call ratios are now at about the same level as at the bottom in April 1997. Yesterday the CBOE pub/call volume ratio and the ratio for options on equities (traded typically by individuals) were
0.99, 0.58. respectively.

For comparison, at the bottom of the market in April, these ratios were
0.92, 0.72 on 4/11 and
0.99, 0.62 on 4/14.

Also compare to the market peak in early Oct., the ratios were
0.49, 0.35 on 10/1

If this level of bearishness persists a few more days, it might indicate a possible bottom, although I would rather see the sentiment surveys hit a low too.
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