Price on this ratio chart now sits at levels seen during the 2008 financial crisis. A break and hold below this level could, indeed, cause some panic selling in equities...one to watch very closely over the coming days/weeks!
I'll post an updated chart after the market closes today...check back here for the update.
Here's a shot of the same chart after today's close...
Here's a shot of a 60-Day 60-Minute ratio chart. The Momentum indicator (MOM) didn't make a lower low today than it did on October 10th...signalling a slowing of the decline of this ratio; however, it did from October 13th and 14th on today's action...signalling renewed strength of this decline over the past three days.
So, as I mentioned above, the 60.00 level would be an important level if breached (and held), especially if a lower low was made on MOM below that set on October 10th, and, particularly below the lowest low set on August 1st. The 100.00 and 110.00 levels represent near-term major resistance now and would need to be reclaimed and held before any great confidence returns on the buying side. This timeframe is also worth watching over the coming days for these reasons.