Positive News and a Lower Dollar Before Market Open

We are Gapping up this morning near recent Highs as a result of better than expected housing and building permit numbers, stable core inflation numbers and slightly lower dollar. The question is.. do we short the SPY? Tough call as there is quite a bit of reason not to, the main reason being that this will be the 6th day that we test these levels. Six times is a lot. Every time we test this level there is a greater chance that we break it. On the other hand we have good odds for a Gap Fill in this situation. I plan to Short SPY with 1/2 a position, then add to that position if SPY moves up to $112 and looks to reverse. If it does not show signs of a reversal at $112, I will cover for a small loss.