Yup, but surely the MM's will disguise the plunge as best they can for as long as they can.
I still need to come up with a model which justifies me taking short trending positions. Have had this on the back burner for awhile, but haven't gone to work on it. Seems like a few years ago I had a trending model that worked decently in a short environment but didn't cut it in a Bull mode. Since we were in a Bull mode back then, I scrapped it.
For some reason I am just now noticing that yesterday was a perfect setup for a 50-50 long RUT/short NDX hedge. Instead I was in cash . . . gotta pay more attention when opportunities arise.