{"id":16563,"date":"2017-09-22T09:19:14","date_gmt":"2017-09-22T14:19:14","guid":{"rendered":"http:\/\/www.t3live.com\/blog\/?p=16563"},"modified":"2017-09-22T09:19:14","modified_gmt":"2017-09-22T14:19:14","slug":"sentiment-report-spx-2500","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2017\/09\/22\/sentiment-report-spx-2500\/","title":{"rendered":"Did Breaking SPX 2500 Put a Spell on the Bulls?"},"content":{"rendered":"

Last week,\u00a0sentiment among traders went all-out bullish<\/strong><\/a>\u00a0as the SPX flirted with the 2500 mark for the first time ever.<\/p>\n

Subsequently, the\u00a0SPX\u00a0<\/strong>grinded up to set a new all-time high at 2508.85 before backing down just a bit.<\/p>\n

So let's see what's changed this week.<\/p>\n

Are traders encouraged by a more hawkish Fed?<\/p>\n

Do they care at all about North Korea?<\/p>\n

Let's \u00a0find out using our 4 sentiment indicators.<\/p>\n

(click here<\/a><\/strong>\u00a0for a primer on the sentiment indicators below)<\/p>\n

1) VIX Spread – Bullish<\/strong><\/p>\n

The VIX is once again hovering around the 10 level after going as low as 9.54 this week, indicating that traders are not pricing in much volatility.<\/p>\n

The 3-month spread is at +3.98, which means traders are fairly bullish.<\/p>\n

When this number moves above +4.5, then it's a clear sign of froth, and we could get there soon.<\/p>\n

(click here<\/a>\u00a0<\/strong>for a primer on the VIX spread)<\/p>\n

2) CNN Fear & Greed Index – Bullish<\/strong><\/p>\n

The Fear & Greed Index is at 66, down slightly from 73 last week.<\/p>\n

The F&G Index operates on a 1-100 scale, and a reading of 66 qualifies as moderately bullish.<\/p>\n

3) AAII Sentiment – Neutral<\/strong><\/p>\n

The latest AAII Sentiment Survey shows that 40.1% of individual investors are bullish. This is down slightly from 41.3% last week.<\/p>\n

This 40.1% reading indicates that individual investors are basically neutral, though it's much higher than readings we've seen throughout 2017.<\/p>\n

4<\/strong>) CBOE Equity Put-Call – Bullish<\/strong><\/p>\n

The CBOE Equity-Put Call ratio was at 0.66 Thursday, which is right in line with the long-term average of 0.655.<\/p>\n

The 10-day moving average is 0.625, which is below the long-term average, and indicate higher-than-normal demand for call options.<\/p>\n

Stretching out things just a little bit more, this measure has been below the long-term average for 14 of the last 18 trading days.<\/p>\n

So there have been a lot of folks gunning for more upside through the options market.<\/p>\n

Conclusion<\/strong><\/p>\n

Out of 4 sentiment indicators, we have:<\/p>\n