More Strength to Follow

Monday was up big but the put/call ratio signals rising bearishness.

click to enlarge

I think this is because the early GDP shorts did not have time to cover yet and the late bulls did not get the chance to enter the market. The rally was too fast. Thus, the divergence shown by the arrows above. This portends more upside for the spx. Here is a projection using the Fibonacci retracements. The next target is 1155.

However if the 1150 level is not reached by Wedenesday or Thursday's open at the latest I will take profits on my position since I expect the market to correct into the NFP report on Friday and the FOMC meeting next Tuesday.

I think on Tuesday oscillation will be the main theme of the market. Early weakness should be bought, but I think the short side can be played too, intraday.