The US and global markets appear stretched both on a technical and fundamental basis. A correction is looming and is likely to be significant this time around. Here are some bear Exchange Traded Funds (ETF's) to look into:

a) The S&P 500 Ultra Short ETF (SDS) - This ETF is an inverse ETF on the S and P 500 that doubles the downside performance of the S&P 500 Index. The S and P has encountered major resistance near 2135 and is unlikely to take out this level convincingly.

b) The next ETF is the Ultra short ETF on the Nasdaq 100, QID. This inverse ETF would double the performance of the Nasdaq 100 on the downside. Off late the breadth on the Nasdaq has considerably narrowed with very few stocks holding the Index up.

c) The third ETF to consider is the inverse ETF on the Russell 2000 small cap index. In the event of a major correction small caps will definitely under perform the broader market.

d) Another Inverse ETF to consider is the SKF which is the ultra short ETF on the US financial sector. Financial stocks are nowhere near their highs set in 2008 and could significantly under perform in the next leg down:

e) Finally Emerging markets have already started to sell off and could significantly under perform in the event of a major sell off in global risk assets. A way to play this is through the ultra short ETF EEV on the MSCI emerging market Index.