It seems like a lot of people are eager to short the market right now.  The two main reasons are; the market has run up too much in the short term and the fact that we are very close to some possible significant overhead resistance.

If you look at the McClellan Oscillator, which closed at +206 last night, might suggest that we are due for a pullback.  Rallies tend to slow down once we get to the +200 level.

You don’t have to be a chartist to see the possible overhead resistance.

Tomorrow the Non-Farm Payroll numbers will be released at 8:30 am, as you can see on the spreadsheet below, the market tends to get weak following the release of the data.
The one piece of data that as of right now will more than likely keep me away from a short trade on the SP500 is breadth. Breadth tends to peak before the indices, and so far it has not, it has not even shown signs of slowing down.  Not initiating too many long trades here makes a little bit more sense to me than outright shorting.
My opinion is subject to change as new information comes in.

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at or 646-480-7463.