Today's market action is suggesting that U.S. equity indices are beginning to break down, as leading indicators are increasingly pointing to the likelihood of a double dip recession. The number that the market was focusing on today was existing home sales, which were very disappointing. The consensus estimate was that sales would rise by around 6% to 6.11 million. In reality, home sales fell 2.2% to 5.66 million. "Troubles are lurking ... owing mainly to a persistently high unemployment rate and increasing amounts of 'underwater' homeowners," said Josh Shapiro, chief economist for MFR Inc. Macro indicators are now indicating that the economy is decelerating at a faster pace than most observers had expected. Stocks are likely headed down in the near to medium term. Look to the retail sector to establish short positions. Among the names that could pay off on the short side if the economy continues to deteriorate are the SPDR S&P Retail ETF (NYSE: