Updated
Updated · TheStreet · Aug 20
Equities ISEE Call/Put Ratio Jumps to 2.89 as VIX Holds at 16
Updated
Updated · TheStreet · Aug 20

Equities ISEE Call/Put Ratio Jumps to 2.89 as VIX Holds at 16

1 articles · Updated · TheStreet · Aug 20

Summary

  • The equities ISEE call/put ratio climbed to 2.89, its highest since June 2, a level the report says has previously coincided with market highs rather than fresh upside.
  • Other sentiment gauges also point to complacency: NAAIM exposure stands at 94, Investors Intelligence shows 54.7% bulls versus 15.1% bears, and the VIX remains subdued at 16 despite the pullback.
  • That muted fear is showing up in trading action as well, with Nasdaq downside volume only 52%, suggesting selling pressure still lacks the kind of washout often seen near durable lows.
  • Banks remain a key concern because the Bank Index is down on the month, has broken its short-term uptrend, and closed below its 50-day moving average for the first time since April.
  • The report argues the broader market is still not oversold and says the earliest such condition may be about a week away, leaving room for further downside even if indexes try to hold near their 50-day averages.

Insights

If major indexes are still floating on complacency, which underlying sector will be the first to trigger the inevitable oversold crash?
With volatility unusually calm and sentiment stretched, what hidden catalyst could suddenly turn this orderly market pullback into sheer panic?
Despite strong earnings, banks are breaking down and top stocks face double tops; is the market secretly preparing for a massive correction?