This is really a “choose your poison” type of moment for the markets.

Here is what it boils down to:

• Option A) Fade the market here at key resistance. There is a favorable reward for what you have to risk in doing so. But the probability of a significant sell-off isn’t in your favor here, because the market is doing everything it can to melt up here. 
• Option B) Buy the Dip. The Reward for what you are buying compared to the risk that you are taking on is not that great. The market is up over 210 points on SPX since the February lows with no pullback as of  yet and up 9 out of the last 10 days. Based on what we have seen of late, the market has only one desired direction to it and that is up. 

Right now I am sporting one long position and one short position. I would like to add more but the bulls seem to be running on fumes here, and the bears are lacking cojones to put together a sustained sell-off. 

So that is the quagmire of the market for now. Stay tuned.