Ready to Take Profits

The 5 day EMA of the total put/call ratio is very close to the overbought level,

while the simple total put/call ratio is overbought and displaying a pattern often associated with short term tops:

The above in the context of a big gap up suggest that I should take most of my profits today. I will leave only about one third of my long position open just in case I am wrong and the market goes straight to 1250 (timing corrections in a fast uptrend is hard).

My favorite level to cover is the high of the overnight range up to now, 1234.25 ES, but anything above SPX 1230 will do. I expect a 25 point correction by the end of the week, after which I plan to reenter my longs for a move to new highs. The FOMC meeting next week will act as a magnet for the new rally.