⚠️ VERY TELLING SIGN!! READ OR PAY THE PRICE 😉

Now we see that the SPY has made over 12% drawdown since it major top in 04JAN22. Currently the correction in the Nasdaq Composite reached -19.72% peak to trough while the Russell 2000 came off -21.44%.

This is the largest correction in the general market since the Covid crash in March of 2020.

However, this indicator is a sign that we might not be out of the woods yet. What is telling us that? Well the buying patterns of traders and institutions.

The Put-Call ratio is barely in the neutral level, which suggest that the participants in the markets have not been buying puts (aka equivalent to selling short) just yet. When they do, things can get really ugly. /for the chart we look at 10D SMA of the PCall ratio on the Daily timeframe/

This together with the high VIX should be more than enough to keep you on the sidelines.

REMEMBER CASH IS A POSITION and if you were in our free discord service you would have already been out by 13JAN