Most of the morning, the Index Put Call ratio, has remained above 1 until the last hour. We can see the rally is beginning to consolidate and rest. We’ll see if this rally can hold its daily gains, something that has not been doable in the last 2 months. Due to the unusual volume in financial stocks, this may be leading to an irregular reading on call buying. Many traders are scooping up calls as a lottery ticket on the financials, especially with a meeting in the Government to address mark to market. This alone is causing us to see reading below 1 more often than normal, especially with a market selloff like we have seen in the past several weeks.

The Index Put Call ratio capped another up move. After this mornings move up, the ratio dove below 1 fairly quickly and remained below 1 trading near .80 all day. Unless we see a last 30 minute rally the market trended down the remainder of the day since that ratio dropped.

Interesting… this morning the Index Put Call is sitting at 1.23; this rally is not fully trusted and appears traders are out to buy puts. We’ll see what occurs from here. If we continue to move upward and can form some higher lows intraday, we need to see this ratio stay above 1 for a while. A drop down below 1 and this up move will likely fail.

Unbelievable!! The Index P/C ratio has stayed below 1 almost all day. As you can see no intraday bounce has lasted more than a couple of minutes. As I type the ratio is .97 and only has bounced above 1, one time today. This occurred at 11am NY time just as we got the largest bounce of the day. That bounced produced a P/C ratio below 1 again and we dropped to new lows.

Right from the open the Index Put Call ratio dropped below 1. As you can see the market dropped its morning gains quickly.

Well, the ratio dropped below one quickly this morning and you see what we got, more selling. This ratio has been spot on most of the time during this bear market. When we drop below 1, it pays to NOT be a buyer as we drop 200 points on the DOW.We are sitting at .92 now.

The Index Put Call ratio is acting a bit different in todays rally. It is actually staying above 1 and recently has increased a bit. It is at 1.25 as I write indicating many traders are NOT trusting this upmove. The other day we saw it drop to .73 on the rally and that rally failed by end of day. If I see any changes I will make a post.

Unlike Thursday when the market attempted to bounce intraday the Index Put Call Ratio was .76, this led to the rally being short lived and we experienced more downside pressure.This morning as the selling continues the Index Put Call Ratio is sitting near 1.5. If we see a intraday rally, we will want to keep a check on the Put Call numbers. If it were to drop below 1 the rally will likely not last. We need to see this Put Call remain high and any rallies not be embraced from the outset to have any sustainably for more than a day.I will try and post these numbers if I see significant changes.

Did the cut in dividends of GE put a bottom in the stock? During Bear Markets when the unthinkable becomes the prudent thing to do, it sometimes signals a bottom. This idea was unthinkable not long ago… now the market may praise it actions.If we close above 9.31 today on increasing volume we may have a good clue to the answer.