I switched over to the dark side today, taking a position in SDS at the close today. I guess this is kinda over dramatizing things as its a small position, but nonetheless, its the first time I have gone short the overall markets since the bounce from 1040. For the second consecutive day, I did not like the action in the markets today despite the fact that the all the major indices closing in green. Remember, that topping out is a slow, gradual process, specially in markets as strong as these. Notice the negative divergence in MACD in the SPX chart below. As far as my short position goes, I will sell it when SPX touches 1225 or 1250, whichever comes first. Just to clarify my position on the overall market, I still think that any dips will be bought but just that a pullback seems to be on the cards.
Take care and good luck!