Put/Call Drop

After spiking a little the week before last, the CBOE Put/Call Ratio dropped fairly sharply over Wed-Fri. Below is a study I ran last night showing the implications of similar drops:

Not the most bearish study I've ever seen, but it hints that the market may struggle to add to its gains over the next 2-4 days. I'm seeing some warning signs that the going could be tough here very near-term. Caution may be warranted.

Friday also posted an "inside day". If you'd like to review possibe implications of this, you may want to check out the old inside days studies.