I have covered my small SPY short position for a small loss in the pre-market. The cover was a matter of discipline. Even though I could easily see this market going lower, I don't short deeply oversold markets. I will wait for the oversold condition to be worked off before going short. While this discipline might cause me to miss some opportunities, it has saved me from losses many more times. I have had an excellent run and it is very easy to let down your guard in such a case and trade sloppily. I have had that happen too many times and I am guarding from it happening again.
In the very short run the market is now overbought. I would normally expect a day or two of consolidation in such a case before the market decides on its next move. If the regional banks follow PNC's lead and begin to issue shares in earnest the most likely move will be lower.