As I outlined on Friday every sentiment indicator I look at is sitting at an extreme. In addition, the Fed meeting tomorrow will coincide with the market becoming maximum overbought. We often see a lot of two way volatility following a Fed meeting. I will likely attempt to use that volatility in order to establish a net short position.
I try not to go net short at this time of year as I am not a glutton for punishment but the current setup on the short side cannot be ignored. With the VIX sitting close to 17 I believe that put options are a low cost way of establishing short exposure with defined risk.