The US stock market, as measured by the S&P 500, is currently about 10% lower than its all-time high, which was reached on the 11th of October 2007. This is a huge move given how short a period 6 weeks is in stock market terms.
As a result, it’s no wonder that almost every market indicator out there points to a deeply oversold market. However, one popular, and fairly reliable, indicator does not confirm that the selling is done. The put/call ratio 20-day moving average is currently at about 1.08, which is well below the recent levels that coincided with market bounces. Strong bull moves have usually occured when this indicator has been at the 1.20 level.
The current low reading for the indicator could be seen as not enough fear in the market. Historically, market bottoms occur when fear has reached relatively extreme levels.