Market direction indicators, 5

Continuation of discussion about How Markets Really Work: A Quantitative Guide to Stock Market Behavior

Put/Call Ratio

Over the short term (1 day and 1 week later):

When the Put/Call Ratio is in the upper 10%, the market goes up;

When the Put/Call Ratio is in the lower 10%, the market goes down.

VIX

When the VIX is 10% or more above its 10-period moving average, the market goes up;

When the VIX is 5% or more below its 10-period moving average, the market goes down.

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