Sentiment Has Reached Bearish Levels

Sentiment as measured by the PPO of the equity only put call ratio has reached a bearish extreme.  That doesn't mean that the market can't go lower, but it does mean that we have probably seen the worst of the selling.  At this point we can expect the triangle to play out as originally anticipated or a full out retest of the March low.  I still think we may see a bounce and another decline to finish wave [c] down, but it may rally from here.