Well, maybe this deserves a thread. The 5-day MA of the CBOE equity-only P/C ratio is now above the level it was at during the March 2009 lows. If we sink any further they'll probably hit the lowest point of the last decade(s). Graph attached (p/c is inverted and I think it doesn't show the scale for it but oh well, tough). Obviously this fact in itself has no relevance because the market is very different from that time. What does have relevance is that this level is a) Much higher (or lower on the graph) than during the bottom in March b) Somewhat higher than the highest point in May 2010 (which at the time did not mark the low but was not very far off) There are a few other measures that show that traders are betting on the end of the world while prices haven't really come off much (VIX ratios is one other, then there's the TRIN and probably something I forgot). So are people right to bet that this tempest in a teapot correction is going to turn into a real storm or are we worried for no reason? My personal take is that the downside will be very limited going forward but the upside is rather uncertain also while mr. market wrings out the momos.