Is the market ready to correct? In regards to the S & P ETF SPY, there are some large signs in both the technical area and the fundamental area that the market is hitting a top and is ready for a correction.
On the fundamental side of the equation, earnings and overall economic activity might be taking a breather. Another eye opener is P/E ratios are rising at a clip that earnings growth is not matching. Continuous government blundering is also starting to attract appropriate attention.
Technically, alarms are going off all over the place. This second shot at $159.00 has been a failure. MACD, and RSI at multiple levels (3-month and 1 year) are at overheated levels. May to June the last couple of years has shown to be a down by 5%+ period. With the SPY, that is an approximate 7 point drop.
With all these things going on, a put trade of June $155.00 puts or some sort of put spread in the $157 - $155 range would be traded.
***Disclaimer - This is just an opinion and should not be taken as a recommendation. Do your own due diligence before trading or investing!***