The put/call ratio is showing us that option traders are yet again on a call buying spree. So much that within just a few days, the 5 day moving average has reverted to its 3 year mean.
I hesitate to call it the biggest call buying spree in history, but I do not have the time to chart the long term graph.
This is quite an amazing chart, as it looks like the biggest call buying spree of the past 3 years, including during the greatest dead cat bounce in history. Yet, markets have not rebounded.
Here are the 5 year chart of the VIX and VXO (log scale). Do you see any panic?