The 20 DMA P/C ratio on the S&P 500 has been hovering below its 3-Year mean for about a whole a year now, after making all time lows. This is a sign of extreme complacency for an extended period of time.
The VIX is making new multi-year lows and has barely risen above 25 for a whole year as well. This is another sign of extreme complacency for an extended period of time.
(Bloomberg) The benchmark index for U.S. stock options tumbled to a three-year low, driven down by smaller equity price swings and a report showing manufacturing in the New York region expanded in April at the fastest rate in a year.
The VIX, as the Chicago Board Options Exchange Volatility Index is known, slumped 5.8 percent to 15.32 at 4:15 p.m. in New York, after falling as low as 14.92 intraday. That’s the lowest closing level since July 2007, a month before BNP Paribas SA, France’s biggest bank, barred withdrawals from funds that owned subprime loans, intensifying the financial crisis.
The BPI index on the S&P 500 has been more or less above 75 for 6 months in a row. This is yet another sign of extreme complacency for an extended period of time.
Finally, Reuters Quarterly Poll of 400 Analysts shows that all indices in the world are expected to finish the year higher than the current levels [H/T SS for the 2 links]:
the quarterly poll of almost 400 market analysts and economists showed all 18 indexes covered in the survey finishing 2011 in positive territory compared with current levels.
Several bourses are likely to see double-digit gains over 2011 as a whole, as analysts saw little chance that soaring energy prices and unrest in the Middle East would derail the global economic recovery.