I've seen a few claims recently that complacency is on the rise among investors. Intuitively, it doesn't feel like bullishness is running amock, so I thought I'd take a peek at just one helpful senimtent indictator: the put/call ratio.

Sentiment extremes are much more identifiable at lows, so this is merely food for thought at this point. That said, while the bottom of the chart shows the put/call ratio has fallen (it is inverted for easier reading by decisionpoint.com [1]), it isn't at levels that would historically signal too much bullishness and raise concerns about a top.

On the other hand, over the last year a put/call level of even this range (just below .9) has coincided with a couple of nasty corrections. I think it would be better if the market would cool off a bit now and cause people to get fearful again; if the market keeps ramping, keep a close eye on this and other sentiment indicators to see if things are indeed getting frothy.