You may have heard someone saying we see lot of divergences, even if market is making new high it is not convincing as other indicators are showing divergences. What does it really mean? Below NYSE Index chart shows what that really means. At this point do not worry about what those indicator mean, just understand what "divergence" means. See how NYSE Index in middle of below chart is rising higher but at the same time see how RSI (top indicator) and MACD (bottom indicator) are not making new highs. the RED arrows are going down and GREEN arrow is moving up showing both are moving in opposite direction. When this happens, it is called divergence and is a warning sign that says sooner or later market will correct. However, it does not tell you when will the actual correction start, it ONLY indicates that it will occur sometime in near future. Hence it is NOT a timing indicator but instead a warning indicator.
401K Portfolio: By now you should have got out of the market and move your money to money market or cash funds. Preserve the gains and protect your capital, wait for market to setup again and BUY signal.
ETF/Stocks: You can look for Bear ETF list and see if it offers any good entry points but make sure you have STOP LOSS set on your positions. Regarding Stocks, this may not be a good time to BUY or enter new positions, instead wait for good opportunities to show up. If you are already invested in stocks then have STOP LOSS set on your open positions.
Good Luck trading!!!