#Technicals #Positioning #Sentiment
The Bears are Back in town, but they won't be for long...As long as these Charts reverse.
1) Put/Call Ratio Reversal
Puts versus Calls are reaching March Banking Crisis levels. Maybe it has a little more juice before reversing. Peak Puts = Peak selling pressure. You really need "crisis headlines" for the Shorts to NOT COVER THEIR SHORTS. I doubt it.
2) S&P 500 Oversold Bounce
S&P 500 technicals are approaching reversal territory. The market is Oversold and holding the up-trend. I'm looking for a consistent hold of $431 to shake out the shorts and lay the ground for new buyers.
3) Long Rate Reversal
Rising Long Rates mean less profitability for long-duration assets and higher costs for mortgages. But this may be the top. Bearish Divergence into a major resistance tells me it's about to reverse and ease financial conditions.
4) Dollar Strength Reversal
If Rates Reverse, the Dollar reverses. And the Dollar is also in reversal territory bumping into the down-trend while entering overbought territory.
5) VIX Reversal
Volatility is rising, but the trend remains downward, and the technicals reflect another bearish divergent signal.