The market has continued higher the last two days even as the number of new 52 week highs has declined. The SP500 has retraced almost 50% of the entire decline from May, so a 3 to 5 days pullback would be normal and expected.
IBD has called the market in an Uptrend due to yesterday's confirmed follow-through. However, this was not the most convincing follow-through as volume was not great, just higher than the day before, and the market closed well off the highs of the day.
Once the pullback is over, the probability of more sharp rallies similar to Monday's event is quite likely, so shorting is probably not the best idea right now unless you are going take very quick profits.
I am experiencing intermittent computer problems at the moment, so I may not post again until later this weekend or early next depending on how long it takes to get it fixed.