"Smart money" traders in S&P 100 options have been curiously absent from trading
put options versus call options, which is typically what they'd do during a
rally like we've seen.
A good sign, but low priority »
The percentage of our indicators that were bearish
(for the market) jumped above 30% in mid-March. That 30% threshold can be
considered extreme, and while the percentage can go higher, to 40% or even
higher, stocks usually struggle for 1-3 months after it hits 30%. The S&P
500 did struggle a bit for the next month, not really going anywhere. It
has since gone on to a new high, while the percentage of troublesome indicators
has dropped back to a neutral level.
For months on end, we haven't seen much of a
change in the sector overbought/oversold levels. They have stayed mostly
within neutral territory, or dipping in and out of mild overbought territory.
Overall, nothing to be too worried about for a broader-market perspective.