Wolfe Research pointed out that the five-day moving average on S & P 500 put-to-call ratio — which looks at the number of put options bought relative to call options — fell to just above 0.6, flashing a sell signal. "It is simply buying intense fear and selling extreme complacency and bullishness. The last 4 signals were quite timely in calling for a short-term peak, with drawdowns of 9%, 10%, 13% and 21% soon to follow," the firm wrote.
The Cboe Volatilty Index spiked north of 23 earlier this month, as worries over the U.S. economy weighed on sentiment. Janney Montgomery Scott technical strategist Dan Wantrobski also pointed out that stocks are overbought short term. "The correction we had been looking for earlier in September experienced cycle inversion on 9/11, and since then, we have effectively experienced a 'crash upward' in risk assets," Wantrobski wrote.
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
AI giant Nvidia delivers strong earnings but fails to satisfy growth-hungry investorsInvestors had lofty expectations from the chipmaker, following a more than seven-fold surge in Nvidia’s shares over the last two years.
Läs mer »