Don't short this market just yet.
We're getting close to the optimal short point, but we aren't quite there. The late surge in financials was both powerful and surprising. We must now wait until a new topping process begins--next week--I thought we had a top yesterday, but apparently not quite. Once we put in a top (hopefully at 870, that'd be ideal) we will either get A) a significant correction and then one last bull gasp higher or B) a new bear trend taking us back towards the lows. If we roll over from under 850, a correction is more probable while if we reach 870 or higher (the 200 DMA is still way up there) we should conclude this bear market rally and return to our regularly scheduled sickening declines. I think we will get an optimal shorting opportunity in the next two weeks to position for a 10%+ decline, however, the close today gives me pause. Let's see what Monday looks like before getting too aggressively on the bear boat.