Ready to Break

The put/call ratio suggests the market is ready to break to the downside:

Notice the last spike up in the ratio (blue) after a not so bullish day.

For the last three days the SPX stayed in a range. The more it stays in a range the nastier the correction. Today it will have plenty of reasons to break-out: GDP revision, Ben Bernanke, unemployment claims, Chicago PMI.

Also, the rally in the Euro is probably over for a while. Here is EURUSD reaching the last target projected using the Fibonacci retracements on this hourly chart:

I managed to add some more shorts yesterday after the lunch. I have an average of 1142. As for stops, I would not like to see the market trade over 1145 - 46 again. If it does, I will start scaling out of my position.