ISE Sentiment Index (ISEE) Hit 4 Year Low on 9/28/2011 (All Securities)

The ISEE Index, or ISE Sentiment Index, measures opening long customer transactions in call options over put options on the International Securities Exchange (ISE). It doesn't include "market maker and firm trades", so it is considered a better measure of sentiment. Here is the calculation: ISEE = Customer Opening Long Calls/Customer Opening Long Puts x 100. A number under 100 shows more interest in puts than calls and vice versa.

The main reason why I'm bringing this up is because on 9/28/2011 the ISEE Index (All Securities) hit a low of 53, which wasn't even hit during the 2007-2009 recession and financial crisis. It came close on 3/10/2008 when it hit 56. The ISEE actually pierced through that level on 6/30/2011 when it hit 55. So, 53 seems like an extreme bearish read, no? It hit a high of 230 on 12/10/2010. Since that extreme bearish read, the ISEE increased to 96 on 9/29/2011 and 89 on 9/30/2011. Sometimes extreme reads are decent fades, but I'm wondering if there's a longer term sentiment read from this.

When looking at the ISEE Index (All Equities Only), the ratio hit a low of 71 on 9/28/2011, which was the lowest read since early 2008. But it didn't break below 70 and 66, which were the lows on 1/17/2008 and 3/10/2008. Somewhat interesting. Chart them out at here.

ISEE Index - All Securities (ISE)

ISEE Index - Equities Only (ISE)