Put/Call Ratio Extreme Suggests That Rebound Attempt Is Imminent - 3-28-18

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The above snip is the result of a scan looking at extreme put/call ratios by a few different measures while occurring in the context of a bull market moving average configuration.  Other conditions were that daily and weekly MACD were pointing down and SPY closed down 1% or more on the day.

That paired the list down to a very bullish subset.

SPY only declined about 1% or a little less this morning, but from short term timing cycles and non-confirmation with the QQQ fund, as well as the above noted study, it seems that the downside could be muted for the coming days. 

I exited the rest of QQQ puts I held.

I entered an April 4th SPY 258 strike call with a limit order of 13.50 to exit before expiration if it occurs, but otherwise exit at expiration next week.


Pete