The SPY put-call ratio crashed to 1.51 today, well below its 20 dma, on a strong rise in open interest.
SPY put volume fell by 18%. SPY call volume rose by 92%.
The CPCE joined the SPY put-call ratio in a sizable drop. Meanwhile, the CPCI (smart money) surged to 1.54 at its top Bollinger Band. Recent dates when the CPCI reached this level and its top Bollinger Band include August 4 (before three days’ lower lows) and July 24, the high before the correction into the August 7 low.
All of this together would usually be short-term bearish. It’s supportive of a downward breakout from the purple megaphone to the bottom of the red megaphone. The price must then retrace to at least the red megaphone VWAP at SPY 196.45ish, but one more new all-time high before a correction to at least ES 1924/SPY 192.90ish still has higher odds.