Inverted head and shoulders on the SPX?

Well, I can't wait for Monday. Just curious about opinions for Monday?

 

Opinions?
My opinion is extremely bearish for next week and here is why

 

The futures indicate a 6/10 % higher open for the sp00z

 

Would you mind to post a link to futures quotes you are looking at?

 

Hey Sirigian,

Can you explain that chart to me? I've never used the put/call ratio because TOS doesn't have it. I'm going to check out that indexindicators.

 

WOW....you have SATURDAY index futures quotes......COOL!!!

 

My understanding is that the lower the PUT/CALL ratio - the more CALLs people are buying - meaning they bet on market going UP. As you can see people are as bullish as they were prior to the crash so there is a bigger room for S&P to go down then UP.
Generally PUT/CALL ratio is moving in inverse to INDEX

Hope this helps

 

No, putz. The DIA and SPYU closed 6/10% higher @ 8PM friday which means that the futures will open around 6/10% higher

 

So if price were going up, and you were looking to short, you wouldn't find confirmation in a put/call ratio that was trending down would you? You would need the put/call ratio to be trending up when looking to short, if you used the put/call ratio that is. I've also heard that in extremly volatile times, it's not very useful. Have you found that to be true?

 

I think put/call ratio is more of a oscillator than a trend indicator. As investors get comfortable (on the long side), they sell off their puts (protection) - hence put/call ratio would decline. Trader would look for a reversal for the market to drop and put/call ratio to go back up.