This time last week, there was little reason to even think about shorting this market.

Over the last two days though, the bears have grabbed hold of this market and wiped out over a month of gains for the bulls.

Essentially it’s the stairs up/elevator down theory taking place here. 

I haven’t gotten short on this market just yet, as it is difficult to know with any great amount of confidence, whether the market is just blowing off some steam, or if this is a real market reversal taking place. Of course Q4 is on everyone’s mind from last year and while another similar sell-off could take place here, it is better to wait for the dead cat bounce in order to position yourself short.

Right now there are enough stocks testing major support levels, that the potential of a bounce provides a nice risk/reward setup worth taking, but anything more like what we saw today, then those will all be off the table for a good while. 

Here’s the list of short-setups.