While shorting the market is very enticing right now, holding off until we see more convincing weakness should increase the odds of profiting.

Today showed us that we have not hit any bottom and that last Friday’s rally was merely a mirage as the professionals were shorting the whole time. The drawback for bears is the lack of volume in the major indexes.

There are two levels of support that we are approaching.

What to take from the chart is that we have yet to fall below a couple close support levels. First is the point at which stocks rebounded that we failed to fall under today, around 10,050. Second is the level at which stocks rallied from last correction, around 9,900. These two support points present significant challenges to investors looking to short the indexes.

Most likely, the market will continue to decline on Euro economic worries and short selling. Still, there is a chance that we could see a burst buying tomorrow and continue forming a base.

If you are looking to short the market, here are several options:

DOG - 1x the inverse of the Dow

DXD - 2x inverse the Dow

FAZ - 3x the inverse of the Dow