The Equity Put Call Ratio chart shows that the level of put buying is starting to rise ahead of the predicted market pullback for the week ending September 29, 2017.

The Equity Put Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market weakness or bet on a decline. Call options are used to hedge against market strength or bet on an advance.

I did a lesson on options trading strategies here. StockCharts published an excellent article on the Put/Call Ratio here.

Equity Put Call Ratio

Equity Put Call Ratio chart shows put buying on the rise.

The level of put buying relative to call buying often shows puts rising before a market pullback as evidence by looking at the S&P 100 Index.

Puts rising right now fits the end of September pullback scenario nicely. Swing and day traders are clearly starting to bet on a small market pullback for the week ending September 29, 2017.