Additionally we are sitting at the top of the 3 ATR band, this also suggests that we are near-term extended.
I would expect a garden variety index pullback (no more than 5% or so), given the overall strength of the markets (fundamentally it is a different story, however technically the charts are more bullishly biased than bearishly biased).
The cause for concern is the pattern that we have currently broken out of, i would think that we are in a brief bull trap, whereby new longs are roped in, just before we have a market correction. It is after this correction that i would look at entering long positions.
Until then, cash with light long exposure and some index hedges seems to be the best play at press time, at least until we see a market pullback.