Yesterday equity markets made new highs but then sold off sharply in late afternoon trading. This is bearish behavior. Before selling off, the NASDAQ made a new yearly high (surpassing its April 20 high of 4,969). The S&P 500 also made another new high for the year at 2,119 before it sold off. The DOW broke briefly above 18,000 before it turned down and closed the day with only a 17 point gain. The DOW did not break above its yearly high of 18,167 so we still have a strong intermarket bearish divergence signal in a reversal zone (which technically ends tomorrow). This looks like a good time to sell these markets short for at least a moderate correction which could last into the end of this month. We can set a stop loss for this trade on the DOW exceeding its yearly high of 18,167, especially if that happens after Wednesday (i.e. outside the current reversal zone). I would suggest shorting the S&P 500 or NASDAQ here because there is a chance that the DOW has already started a new medium-term cycle and may not correct down as far as the other two indices. Entering a short position in the broad stock market before the markets open this morning.