Staying away from the markets requires much more skill and discipline than what is involved in entering a position. And that's exactly what makes the market action in the last few days so hard to trade in my opinion. If you are a day trader, you have got to be loving the volatility of the last few days but if you are a swing trader, chances are you going to find yourself stopped out repeatedly irrespective of whether you are taking long or short positions, which is like death by a thousand cuts.
Looking at the index charts, one could say that the markets are making a slow topping out formation, at least for the short term. But how has that worked out for the bears in the past few months? Also, for those who rely on charts and technical analysis to give them an edge, how much of an edge do you actually have in a news dominated market? These are the questions one has to consider before betting big, either in short positions or long positions. Personally speaking, I have ~ a 75% cash position which helps me sleep easy at night. Agreed, I might miss a big overnight move in either direction but that's a small price to pay for peace of mind.
Take care and good luck!