Today's price action looked very much like an exhaustion gap. The market gapped up at the open, ran up, then pulled back at the end of the day. For the third time in two weeks, the VIX moved up on an up day in the market. This time it not only moved up, but it closed at its high for the day...even though the Dow closed up over 30 points. I don't currently expect a major drop until possibly after the elections next week, but that might be a reason why it occurs sooner...because everyone is expecting it after the elections. I still like last week's bearish picks on SNDK and TIE. They are still in good entry positions. Some other bearish stocks include AXP and GMCR. AMZN could be getting close to a 30 point correction. It is one of many stocks that are getting extremely overbought. It would need some confirmation, but it is one to watch if the market starts to sell off.
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