2007-3-20 2007-3-20 As the Russell 2000, NASDAQ Composite, and the S&P 500 are making new highs, this is a good time to look at how close we are to a sell signal. Tonight we are going to look at charts of the put/call ratio, NASDAQ new highs/new lows (/ refers to divided by), and the NASDAQ Trin.The first chart below shows the put/call ratio with a 25 day exponential moving average. The NASDAQ Composite is at the bottom of the chart. You can see how the put/call ratio declines with advances in the NASDAQ Composite and increases when the the index falls. The 25 day exponential moving average of the put/call ratio is currently higher than both the 2005 and 2006 peaks in the NASDAQ Composite. Even though some technicians look at this as a divergence, we disagree. Our research has shown that markets top and bottom on extremes. We would expect the put/call ratio to be much lower before we trigger a signal of sell. text/html 164164 http://www.nasdaqwizard.com/midweek022107.html 1.0 EN index,follow As the Russell 2000, NASDAQ Composite, and the S&P 500 are making new highs, this is a good time to look at how close we are to a sell signal. Tonight we are going to look at charts of the put/call ratio, NASDAQ new highs/new lows (/ refers to divided by), and the NASDAQ Trin. text