I think the market has arrived at a short term top. The put/call ratio has climbed slowly back towards overbought levels, after being there last week. This pattern usually precedes tops:
I think the market will start to go down from the ES 1252-1254 zone. A 15 point correction seems to be the norm, but, given the low volatility, it might end after only 10 points to the downside.
The bullish sentiment is increasingly visible in the media. Today I even saw a projection of 1500 for the SPX until June 2011! This leads me to believe that, after a small correction, the market will make new highs and then start an intermediate term correction in January. The only caveat to this scenario is that something similar also happened in January 2010.
1 comment:
Adi, thanks for the update. Usually Jan.is the correction month for the year.
GL!
Tony
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