The S&P 500 (SPX) appears to have hit a near term top, which may preclude a consolidation or a correction. I see that as healthy. I expect the market to test its 50 day moving average, probably today or Friday, and then perhaps plunge right through it.
The Dow looks similar:
The Russell 2000 (NYSEARCA:IWM) looks a little less healthy:
And the REIT index (NYSEARCA:IYR), which I am short, broke through support on Wednesday, albeit not by much.
It's a long, long way down for the REITs.
I don't think we are at the beginning of a bear market in stocks, but I think that date is not far away. In the meantime, we have to shake out a few weak hands, and mess with the hedgies' heads, who get short on a dime.
Today should be an interesting day.