Market Outlook

The ratio is behaving unusually - dropping big (on my inverted chart) when there was little bearish market action:

Normally, with the ratio at these levels, the market would be a screaming buy but the upside after yesterday's lunch has vanished quickly so this behavior casts some doubt on my scenario.

I think the 1092 level is very important. The correction from 1104 has been big enough for the market to rally from here, so any decisive weakness below this level will suggest the 1120 level would not be reached this week.