Loading ...As mentioned previously, volume based sentiment indicators have zero predictive value, which is why I focus on open interest ratios. Open interest ratio measure what traders are willing to hang on to overnight, and for this reason are a better reflection of true sentiment conditions — and hence fuel for the machines.
An examination of the open interest put / call ratios from trade on Friday show the trends for the two important markets (SPX and QQQ) remain in tact, tacking on additional gains as speculators continue attempting to bet on an impending top.
Thusly, allowing for some volatility, the trend(s) in the broad measures of stocks should continue higher.
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