Let's start by taking a look at the SPY Open Interest and Volume for the week ending 8/26/2016. The chart for SPY Open Interest is below. Also, the SPY volume chart from Friday is shown. What is that telling you?
Market sentiment look bearish. There are 662,615 open put contracts and 356,849 open call contracts. That nearly twice as many puts as there are calls. Looking at the volume, there were 219,898 calls traded and 245,585 puts traded on Friday. THe Put Call Ratio is 1.1168. That shows the market is weighted to the downside for SPY.
But, the Put Call Ratio is useful as a contrarian indicator. In this case the evidence shows the market is bearish. The contrarian play to that would be to go long. The market is usually reached when the overall sentiment is bullish. Therefore the market will continue to grind higher this week. That's the pattern that seems to have been established in the post 2nd quarter earnings period. Right now it doesn't show signs of stopping.