The market was little changed Tuesday based on the S&P 500. But a look at both the NASDAQ and Russell indicates that the S&P 500 masked a lot of the day's weakness.
The tendency, as we've seen a huge run in the market since the beginning of the month, is to get nervous about holding current positions any longer. Kind of like being afraid of heights the higher you climb.
However, if you look at the current price action on the daily SPX or SPY, you'll find that price still remains above even the shortest time-frame moving averages, like the 5-day. So while I'm somewhat tempted to short a stock like Best Buy (N:BBY), which is setting up beautifully for the downside, I've held out until now to see if the market is willing to roll over.
For now check out the bearish list of stocks below and identify the ones that meet your requirements for a good reward/risk setup.
And be ready to pull the trigger if this market suddenly gets funky.
