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CMT Association CMT Level II Sample Questions:
1. Which of the following is an INCORRECT interpretation of the put-call ratio?
A) When call volume exceeds put volume, this has bullish future implications for the market
B) A very high ratio indicates an oversold market
C) When options traders are bullish, call volume exceeds put volume
D) A low ratio is considered a warning of an overbought market
2. Which of the following factors would increase the predictive power of the evening star pattern?
A) All of the above
B) If the last candle closes deeply into the body of the first candle
C) If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern
D) If there is no overlap among the real bodies of the candles in the pattern
3. Interpret the relationship between the S&P 500 and the NASDAQ 100 indexes based on the chart shown below, if the Pearson's coefficient of correlation is 0.45:
A) Non-linear relationship, as the Best Fit line is curvilinear.
B) Linear relationship, as the Best Fit line is curvilinear.
C) Linear relationship, as points fall generally along a straight line.
D) Non-linear relationship, as points fall generally along a straight line.
4. A security has just broken out of its trading range to the upside. Over the course of the next 2 days, it rises an additional 5% from the point of the breakout. It then returns to its prior resistance line, before continuing the uptrenD. What term best describes this phenomenon?
A) Premature Breakout
B) Failure
C) Shortfall
D) Throwback
5. All of the following most directly measure internal market strength, EXCEPT:
A) Arms Index
B) New Net Highs & New Net Lows
C) Consumer Confidence Index
D) Net Ticks
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: C |



