The market has lent some credence to my idea that U.S. stocks are overbought. The unimpressive Google (GOOG) earnings provided the pinprick the stock market needed to fall.

I would expect the fall that commenced on Friday to continue and intensify this week, with some minor pullbacks caused by positive earnings in some U.S. companies. I have therefore put on a 50% increase in my short position (SPY).

Disclosure: I am short SPY.