The broad market went up and closed down on higher volume which means distribution. The SPY looks like a good short or buy the SDS. In yesterday’s post I mentioned I went long the FAZ and ERY which are 3x short financials and 3x short energy. The chart below shows the confirmation of selling on higher volume today in the XLF. Now let’s see if we get volume at the swing low (I circled in red) at $11.10 on more than 193 million shares then were heading down to $10 range for support.

I also liked the action of the Russell 1000 (IWB)  instead of the Russell 2000 (IWM). The chart below shows high volume selling today. Price went above yesterday’s high and close below is on high volume - downtown we go. I will enter into the BGZ in the morning which is the 3x bear of the Russell 1000.