The SKEW shows that put buying is back to normal levels and that the market (so far) has room to run higher. The chart on the left below shows the current state of short term moving averages on the SKEW are very low (bullish for SPX). It also shows that the SKEW usually signals sharp breakdowns in the market by spiking higher (above 130). These areas are bubbled and are overlapped with the SPY chart on the right.
The SPX needs to break above 1950 and stay there. The market will most likely trade sideways and choppy for awhile, before it breaks out higher or fails and tests the previous lows.
