A. Here are 5 signals you can watch out to tell if the market is ready to turn:
1. 10-year PE ratio
This measures how much investors are willing to pay for profits. You can find this PE ratio from Robert Shiller's site here.
2. Consumer Confidence
The Conference Board's Consumer Confidence Index gauges how Americans feel about their economic situation. Readings above 100 show high spirits.
3. Misery Index
The Misery Index is the total of civilian unemployment rate and inflation. A low reading could signal a peak. You can find both readings DoL.gov.
4. Exposure Index
This weekly survey by the National Association of Active Investment Managers shows what percent of pros' portfolios are invested in stocks. Readings above 95 indicates extreme optimism.
5. Put/Call Ratio
The lower this ratio, the more bullish investors are. A 0.5 or below ratio indicates high optimism. To find this ratio, go to CBOE.com and search daily market statistics.