MMM - 61.8 correction
BA - more than 70 % correction
NIKE - 80% correction
GS - 61.8% correction
JPM - 50%
XOM - almost 61.8%
Visa - 38.2% (after a veryyyy good earnings report and almost a marubozu that day)
These are all well correlated stocks with the Dow (except XOM, which has been only for the last months, and Visa, who just has huge gains, without major corrections) . The only Companies that have a high correlation and declined less than the Dow are AXP and DIS. This is why I consider this fall due to the market. I didn't understand the first reaction anyway in AXP, when we had lower than estimated earnings and a gap up.
My point is, going short after the earnings report and the shooting star just wouldn't make it for me. Going short because of the overheated american market is something else. Comparing the corrections in the companies I listed I believe the shooting star was just a coincidence. Compare it with Visa, which had incredible gains in 2013. Visa posted better than expected earnings, had a very long up candle (signal of strength) and declined as much as AXP. Once again, please don't take this comment as an argument, it is just an opinion and I look forward to your answer, even though it might contradict my opinion :))
1 - strong support at 91
2 - strong pshychological support at 90
3 - RSI still rising (I don't know RSI that well, I use the MACD). On the MACD the histogram was rising, so no bearish divergence yet. The divergence was solid on the 23rd, according to the histogram.
4 - I always, always wait for confirmation after a candle such as shooting star, doji, spinning top etc.
5 - I always wait after an earnings report, I don't jump in. I jumped in before, and got burned, so I learned to wait.
6 - the market was rising, and AXP is well correlated as I said in my previous comment.
If (and I admit I didn't) I would go short, I would go on the 24th. Only then, I had my short signal, according to the way I look at stocks ( I never shorted a stock until now, I have to learn more about it).