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It feels and appears that the market has had a change of character.

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SPX Chart

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:

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DJIA Chart

The Russell 2000 (NYSEARCA:IWM) looks a little less healthy:

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Russell 2000 Index

And the REIT index (NYSEARCA:IYR), which I am short, broke through support on Wednesday, albeit not by much.

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IYR Chart

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.

Source: Is the Market Topping Out?