Where do we go from here? #SPX #SPY #OPTIONS S&P 500 FUTURES (CONTINUOUS: CURRENT CONTRACT IN FRONT) CME:SP1! bottomcatcher Rumour has it that monitoring the activity amongst option traders (small options traders in particular) could be a reliable indicator. Does this mean we should assume they are wrong most of the time and that we should have a contra opinion? Investors around the world are trying to anticipate the next market move, countless talks amongst professional analysts about this particular recovery being unsustainable are widespread. Does that suggest fear like our option trader friends? And do they have a history of getting it right most of the time… I’ll leave that up to you to decide. Two things we can be sure of, and they are, If there is to be a sharp decline most traders will get the timing wrong, that’s a given. The other is, regardless of what analysts or your mate down the pub says, markets are mainly driven by sentiment. As long as newbie traders and small speculators are shorting the markets they will most likely continue to rise. Let’s assume the above Total Put/Call Ratio Vs SP500 chart has some bearing on the likeliness of a decline in the near future. If that is the case an educated guess would be in between now and the end of next month… Not much help for Day Traders, I know. But for the more patient trader a clear opportunity should soon present itself. .