Eyeing A Short Covering Rally
Short covering rallies appear when the put/call is high, as it is right now. The put/call ratio is hovering right around 1.0, and today, we saw the market trading higher at the end of the day. We also had signs of incoming volume and a decent, short-term uptrend. This is what to watch for in the case we get a gap up, and short-covering rally.
