Let's look at the daily chart of the S&P500: it's highly overbought now. Just look at the RSI (Relative Strength Indicator) that is above 70 and compare it to the very oversold situation last March when the rally started. I am expecting a strong pullback soon. I am starting to hedge my long-term investment positions with SDS (double leveraged short S&P500 ETF).
Have a look also at the 60-minute chart of SPY below: since July 13 the SPY has been trending up continuously above the blue line. But there is a bearish divergence between the SPY price and the MACD + RSI, which means a correction becomes highly probable.
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