Sentiment Check - Put Call Ratio (5 Day MA, 0.8 threshold)

Put / Call ratio below 1 indicates bullish positioning and sentiment (and vice versa). When the 5 day Moving Average of PCR falls below 0.8, equity markets at large (using SPX as proxy) are generally overbought and sentiment has overshot the reality on the ground. Typically yields some kind of pullback shortly thereafter, while any gains seen behind the signal are given back in the following month more often than not