One of the more accurate indications of a correction coming is the turn of the 5 day ema of the total put/call ratio after it has penetrated the overbought zone:
The turn happened at Friday's close so, judging by the past behavior, a top is just 1-2 days away. I think the best opportunity to take profits or sell will emerge tomorrow after the Fed announcement.
How big a correction is anybody's guess. I expect it to reach the 20 day MA quite fast, probably in the SPX 1215 area. I also expect the simple total put/call ratio to give another signal for going long. Becoming too bearish in an uptrend in the middle of December would be a mistake.
For today's trading, I think the gap up will be sold but the market will hold after the initial small sell off and probably close strong again.
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