Reversal Indicator shows selling may be exhausted
Traders are once again starting to ignore the larger threats to the global markets and looking instead at how they can get back on the fed gravy-train of this perpetual bull market that we are in. The notion of going short on an extended swing-trade basis does not hold much merit for me, no matter how bad the news in Europe gets. We are in a bailout-bubble that will only stop when the greed and short-term actions that governments around the world are engaged in collapses on itself.
The SharePlanner Reversal Indicator is showing just as much, which the market barely retracing since, and no more than 4% on the year, the opportunity for any extended gains to the downside is extremely limited. Shorting should be left to day-traders. Swing-trading to the short side is a losing proposition.
Here's the SharePlanner Reversal Indicator.