Not There Yet

I stated previously that I was waiting for a correction to reload on longs for a move higher. My trigger for going long again would be the put/call ratio reaching aproximately 1.2 (green line below).

It is not there yet. If it makes an intraday reading today after the lunch at that level I will go long the market. I would also like to see new lows for the spx. Otherwise, I will wait for an end-of-the-day reading of 1.2.

Here is how the market behaved previously in a somewhat similar fractal at the end of november 2008. The context was pretty much the same: bear market conditions.

chart source: Saxobank

Outlook for Monday's trading: I expect an oscillating market. The market can be shorted after an initial rally and can be bought after a sell off of about 15 points. These are intraday plays. I highlighted my areas of interest on the chart below (e-mini september contract).