One measure of sentiment that is notably underwhelming is the CBOE Put/Call ratio. This is a concern for some traders. As of today the 10-day put/call was 101.3. This is actually lower than the 200-day moving average of 101.7. Below are two studies that show what has happened when negative price action has been accompanied by a lackadaisical put/call:
This first one I looked at both above and below the 200-day moving average, and it made little difference. The implication of the Put/Call tests seems to be that a relatively low Put/Call doesn’t hurt the chance of a nice bounce. This was a bit surprising. Also a bit encouraging.