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Trader's Idea Flow Issues Market Caution Signal

|About: SPDR Dow Jones Industrial Average ETF (DIA), QQQ, SPY
Summary

We noticed our stocks watchlist turn from green to red today almost across the board. This appeared to be a broad-based reversal.

Even in the AH session a strong earnings report from Facebook was bought and then sold.

This is a market that is overdue for a pullback and possibly even a correction. Accordingly, Trader's Idea Flow has issued a caution signal.

We have taken profits on our long positions and added to our short positions at this time.

Trader's Idea Flow has taken profits and exited our long positions. We have also added to our short positions. ETFs based upon the broader market indices are vulnerable as are individual stocks. This includes the PowerShares QQQ Trust (NASDAQ: QQQ), the SPDR S&P 500 ETF (NYSEARCA: SPY) and the SPDR Dow Jones Industrial Average ETF (NYSEARCA: DIA).

The weekly and daily charts below illustrate a market that may be overextended and due for a pull back or possibly a larger move lower for a correction:

Disclosure: I am/we are short twtr.

Additional disclosure: Trader's Idea Flow is short several positions including TWTR, SNAP, ROKU, and EFX