Naz, it is probably the total PC ratio, not the equity ratio, if you look at the chart you presented, it is in the lower part of the range, thus bearish short term. You need to look at the equity only put/call ratios to get a feeling of the public's options activity, that has been hovering around .40 (Justa just mentioned that the 21 moving average is close to .4 yesterday). Couple this with peak volume on both the NYSE and Naz, peak in new highs on the NYSE well above 600, failure to have at least 450 new highs 100 Naz points higher than the last top of the trading range, and add few other parameters mentioned in these posts here recently, and you get a short term gloomy picture of the internals of the market.
