Why did I not short the market?

I have several reasons why I did not end the day shorting the S&P. First and foremost my marked price for 1075/1100 SPX weekly puts were not triggered, therefore the trade was out of my risk/reward range. I had no control over that, my instincts just told me not trade it. The premium for puts in all indices seemed to high for my taste. That leads me to the second reason of not shorting the market, to much negativity.

Second, the trend is pretty much negative, too negative that is. Everyone I am hearing expects a bad housing number tomorrow and is shorting the market. From what I have seen last Tuesday when a bad number did not come in as expected the market rallied more than 1%! The lack of trade volume effects the market significantly due to lack of conviction both in bulls and bears. The bears have a slight advantage over the bulls tomorrow, but I am afraid any positive outcome from tomorrow's housing number will only raise the market.

Technically the SPY should continue to go down, but something did not jive with me. The chart above shows that the $tick rating has been towards +1000 more often than -1000 near the end of the day, illustrating institutions are buying even on the end of the day drop. For support on the SPX there is the 1064, last Friday's low, 1060, and the 1050.

For types of trade I am looking going into tomorrow. If the market drops significantly I will look to sell weekly puts. For the SPX the 1000 and 1025 and for the NDX 1700. The market would have to be crushed in order for the ranges I just listed to be hit, not saying it is impossible. If the market rallies then selling calls 1100 on the SPX and 1880 on the NDX. For the week I am concentrated in collecting premiums on options, because I am getting set to go short once September rolls around. I will be trying to save some capital for a big short and expect to position myself before labor day weekend due to jobs report the first Friday of September.