Predicting the Pullback
How we use our top market timing indicator
Editor’s note: This post originally published Oct 9, 2024.
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As we had anticipated, the markets were poised for a pullback. Two weeks ago we wrote that the put/call ratio had reached an extreme level, and that seasonal volatility was on the horizon. When these conditions materialize, the buying pressure that had been propelling the market higher typically starts to ease up. Consequently, the SPX remained relatively flat over the past two weeks:
