The DOW and S&P 500 made new all-time highs yesterday while the NASDAQ did not. All three indices are down today with the strongest fall in the NASDAQ. This is a strong intermarket bearish divergence signal, and we are in the center of a strong reversal zone. It is also late in the current medium-term cycle of this market so a sharp correction and cycle bottom is due within the next several weeks. For these reasons I am entering a short position in the broad stock market now. We can base our stop loss on the NASDAQ making a new high this week (i.e. breaking above 5,868).
I am also going to sell my crude oil long position today as there is a danger of of crude prices dropping with equity markets.