CPC-Ei-ei-ei....

Here is a closeup version of the longer term sentiment chart that I watch (see Sentiment Chart). There are some interesting behaviors at play:

1) Move From July 2009 - April 2010 had a clearly down channeling (bullish option sentiment) trend

2) Apr-June down move in the stock market had a clear up move in the CPCE (bearish trend) and it slightly preceeded the actual drop

3) Move From June 2010 to now has had a clearly channeling down move in the CPCE (bullish sentiment)

4) Highest Put Call Ratio at the close since June. Do we have an option sentiment change right before another correction?

I think these points are certainly worth pondering