The market had one of its worst weeks in quite some time, and I have to admit, it doesn't appear to be looking much better according to the SharePlanner Reversal Indicator, which is pointing to further downside to come in equities.
Granted there have been a high amount of reversals in recent weeks on the SPRI, but no other reversal has shown the aggressiveness to the downside like we saw here.
By no means do I think we load the boat on the short side - this is a tricky market and likelihood that we see a bounce in the near term is very high. But just because we are ripe for a bounce in equities, doesn't mean that we don't ultimately head lower and that is what the SPRI is forecasting here. As a result, be patient for the short-setups, look for opportunities that take advantage of stocks that rise into resistance with a clear bearish pattern overall.
Here's the SharePlanner Reversal Indicator indicating current market direction.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>