So why is S&P rallying? As Keynes himself said, "The Market Can Remain Irrational Longer Than You Can Remain Solvent". With the overtly momentum this year to date, a proverbial 'dead cat bounce' was due. But that's all it is. One of the prime directives of trading is to trade with the not against it. This recent buying is still paltry with respect to the selling which drove the market down.
Timing is everything in trading. When can we expect a turnaround? If we take a look at the chart of SPY and apply some fibonacci analysis, we see a pattern foreshadowing another turnaround. If you apply fibonacci time slice analysis, you see that we can probably expect this to begin as early as tomorrow or to even by market close today.
The seems to hint that the market is becoming overbought at this point, and we see a cross starting to form at 1 hour intervals. The OBV is still indicating positive pressure which indicates now is not necessarily the time to enter a short position. This is confirmed by the and indicators as well.
Wait for a big candle tomorrow or by Monday, 2016-03-07. At this point you can set a stop loss at the base of that candle and ride the trade down to the 0.5, 0.382, or 0.236 levels drawn out.