Market Outlook

Two big trend days in a row is quite a rare occurrence. It looks like traders have great expectations from the employment report. This is why last week I said I wanted my longs before this Friday.

The put/call ratio has reached overbought, which means that the rally might take a break around these levels. A 10 point correction would not be unusual.

I am not expecting a significant correction, however, until the 5 day ema of the put/call ratio reaches the upper horizontal line:

This might happen just as SPX makes it to 1250.