Markets outperformed all of the predicted paths this week which really testifies to the bullish sentiment still prevalent in markets since Trump’s Presidential victory in November of 2016. The Parabolic SAR on the S&P 500 has even given a buy signal.

S&P 500 has Parabolic SAR buy signal on 9-28-2017.

One problem with the upward move is that the level of put buying is still rising.

Equity Put Call Ratio Chart

Equity Put Call Ratio chart shows rising put buying relative to call buying.

What could be going on is that options traders are using the Married Puts strategy. I did a options trading lesson on Married Puts here.

We really need to keep our eyes on the Equity Put Call Ratio chart. If this upward move is going to be a breakout as the S&P 500 begins uptrending then we would expect to see the Equity Put Call Ratio chart fall over the next couple of weeks.