S&P 500 Oscillator
From IntFX
This indicator is calculated by dividing the weekly volume of all S&P 500 put options by the weekly volume of all S&P 500 call options. Big call volume appears at market tops and big put volume at bottoms. Put/call ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment.
[edit] Jim Cramer's Tips on Trading
- Greater than 5.0 : Short the market
- Greater than 3.0 : Lighten up your holdings
- Less than -4.0: Cover shorts
- Less than -5.0: Buy
