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On Friday, Sprint PCS Group (PCS – 31-3/4) dipped to its worst intraday mark since mid-August 1999, as the shares declined by over six percent. The stock has stepped back by 57 percent from its near-term intraday high on July 17 through Friday's close under the pressure of its descending 10-day and 20-day moving averages.
Today, though, the security is in the black by more than three points, or greater than 13 percent, after it was raised to a "buy" from "neutral" status this morning by an analyst at Lehman Brothers Holdings. Despite this climb, PCS remains beneath all of its significant intermediate-term and long-term trendlines.
Schaeffer's put/call open interest ratio (SOIR) on this laggard has dropped from a 1.46 reading on Thursday to the current mark of 0.64. This indicates that investors are starting to show more optimism toward PCS, which could serve as a bearish omen if the equity is not able to carry over today's upward momentum. For more details about SOIR, please visit Schaeffer's Daily Sentiment.