Strong Potential For A Reversal

With an over-extended market heading into an Autumnal Equinox and a Full Moon this week, there is strong potential for a reversal.

Today's move in the S&P triggers scenario #2 from last week's post Where Are We Now?

I am on high alert for a gap and crap, shooting star, or other such action, on Tuesday or Wednesday, in the 1150 area.

Volume still suggests that we will not see scenario #3 (recovery highs above the April top), but it is still a possibility.

TRIN, VIX, and today's CBOE put/call ratio suggest a high degree of bullish complacency. Options traders bought more than twice the number of calls than puts today.

Meanwhile, VIX Oct 40 calls were very active today. 12,640 were purchased. That's NOT bullish complacency.