Topping

I am more encouraged about the short side as I see some things in the market that are quite rare.  The put call ratios are extremely low on both the CBOE and ISE.  This is not just a one day phenomena.  It has been like this since Wednesday.  Historically, it has been bad news for the bulls to see such lopsided low put call ratios for several days in a row.  

Eventually the bulls will be fully loaded and the only way to generate volume is for the price to come down.  We saw this repeatedly in the strong uptrend in the fall of 2009.  I don't think we will make it to 1235 on this run up, we need to pullback to at least 1198 before making a fresh run up.  More likely, we will chop between 1195 to 1225 for the next two weeks and then make marginal highs around December 31 and then go back lower to form a wider range.