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My indicators are giving bearish readings for the fourth week in a row, although they are somewhat closer to neutral this week. I believe that the market is in a rolling correction at the moment, as 40% of S&P 500 stocks have dropped more than 10% from their highs, according to my research. Additionally, the market leaders have also started to falter this month, with Amazon.com, Inc. (NASDAQ:AMZN), for example, dropping about 12% from its recent peak.

Another important stock to pay attention to is General Electric Company (NYSE:GE). When GE declines, the market tends to follow, so it sort of acts like a leading indicator for the overall market. Right now, GE is not doing well, as it continue to drop to new lows for the year, and this could be another indication that the market is in a bearish state.

From a seasonal point of view, August and September are the worst months in the market, and I’m still forecasting that a new low will be made next month. With that in mind, today I’m recommending a bearish trade on a stock that’s particularly vulnerable after disappointing on earnings: DISH Network Corp (NASDAQ:DISH).

Buy to open the DISH Oct 52.50 Puts (DISH171020P00052500) at $0.95 or lower.

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