Reversal Indicator shows a temporary pullback on the daily, but a healthy weekly chart.
It might appear on the surface that the Daily and Weekly SharePlanner Reversal Indicators are showing two different pictures of this market...but they aren't.
Here the daily is indicating a condition ripe for a pullback or reversal.
But then when you look at the week, it is completely different. The uptrend is strong and appears as if the market will continue its onward climb to new highs.
So how do I reconcile the two?
Simple. I think what the daily is showing is that we are ripe for some short-term weakness. Maybe it is just some consolidation. In either case, the daily is showing us that the climb that we have been used to of late, isn't likely to continue.
The direction of the weekly SPRI is very difficult to change. Unless extreme bearishness floods this market, the indicator will still point northward. And like any trend, there are always pullbacks, and to make sense of these two charts, I think it is safe to assume that the uptrend is still intact, but in need of a small pullback to keep things healthy on the charts.