US INDICES : watch those gaps!
​US indices opened bullish gaps yesterday, but the day ended slightly closer to its lows that to its highs with put/call ratios in the over-optimistic area. This is a stop-and-reverse situation for US indices. Should it be closed, the gap would have signalled the exhaustion of the trend. US indices would spend a couple more weeks consolidating. Yet, for the time being, the trend is still bullish. Stop losses can be raised just below the gap for a fast profit-taking. In Europe, the situation is very very different. We are close to excessive pessimism (though not yet at an extreme) than to excessive optimism. It seldom happens that there is such a discrepancy between the two Put/Call ratios. We think it requires patience. Good opportunities usually arise from a simultaneity of trends in different markets.
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