We’re finally beginning to see pessimism rising to the level where you can bet on a bottom. This morning, the ISEE call/put indicator (the inverse of the put/call) opened at 82, which is the lowest reading recorded in the past 52 weeks. That reading came on May 11, 2004 – and, interestingly, the chart of the QQQQ actually looks somewhat similar to today. Expect more downside but with a tradable bottom occurring sometime next week.
