The SPRI while not yet giving us the extreme reversal reading that we are seeking after, there's not doubt we should probably get that reading within the next week or two. We've yet to see the market finish lower overall on the weekly time frame yet this year. Such a rally hasn't been seen since July of 2012 when the market rallied six straight weeks.
Whether we match that feat again or not is anyone's guess, but what we can conclude is that the VIX is at the same lows that we saw back in July of 2007, which was right before we witnessed one of the greatest financial cliamities of our time, the T2108 that I posted yesterday is showing an extreme readings that has almost always led to a greater sell-off. and we are seeing price action butting its head against a rising price channel, which could be the trigger point for that pullback I'm looking for.
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 >>
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