Sentiment indicator CBOE Options put/call ratio is not at a favorable area where rallies are able to gain much traction. This feels eerily similar to last week when we had that big rally on Wednesday sending the CPC back down into the danger area where many investors are loading up on calls. The herd is almost always wrong and right now despite the negative news out there there are quite a few bulls out there.

I don’t see myself doing much in the way of trading stocks in the a.m. because I have a lot of conflicting indicators. My best guess has us gapping up in the morning with an afternoon sell-off sending us back to reality.