While not shown here, volume has trailed off, as well, throughout the formation of the right shoulder, another confirming pattern. Judge for yourself, but caution should be the operative word here if you are a long-term equity investor. The daily ratio is now at .6258 and the 10-day moving average at .5468. More downside looks likely, therefore, at this point, until we see more volume in puts. In the past few weeks we have seen an unusually large increase in OEX put options volume, suggesting that smart money may be hedging or betting on a big sell-off in the next several months.
High readings indicate a put bias.