Framework for Tuesday

The put/call ratio has been moving downward in my inverted chart while the market has rallied strongly. This suggests more upside is in the cards:

I think the 1120 level is perfectly attainable by Thursday's close (see also this previous post for more details on this projection).

However, I expect some downside today during the first part of the session and the lunch. The ES can go as low as 1090-1092. This would leave traders looking at a 13 point correction after the lunch - an opportunity they haven't had since the market started to rally last week. I expect them (myself included) to jump right at it and carry the market higher into the close.