IBD sees the market in correction and reports a put/call ratio of 1.0 on Thursday. It reached an extreme level above 1.4 earlier in the week. The market tends to bounce when the put/call ratio is greater than 1. With the GMI at 0, it remains to be seen if we have a bottom in. With the weak month of September yet to come, I expect we might get a re-test of Monday’s lows. I am in cash in my trading accounts and ready to move to money market funds in my university pension if the indexes weaken again. Remember, I am a chicken when it comes to managing my money. This daily chart of the SPY shows how ugly and swift this decline has been.
