The Reversal Indicator is starting to see some willingness for a reversal back to the upside.
The choppiness in the market of late, and over the last three weeks, where price has seen day-to-day reversals, is starting to show up in the SPRI with its early bearish reversal last week, and the possibility of a bullish reversal that we might see next week.
That is not the norm and only happens when the market gets incredibly choppy in a very wide range as has been seen over the last three weeks. If the bulls can manage to break out of this range, which it is very close to doing, we should see the bullish reversal in the SPRI below. Should that happen, there is also a very good chance that the market will look at the February lows as the near-term bottom this market.
But there is a lot of headline risk, and if the US does retaliate against Syria, and things escalate or get out of hand between US and Russia, then all bets are off. Me, personally, I don’t think there will be a significant increase in tensions between the two countries. Yes, you will probably see a symbolic strike by the US against Syria that takes out a few airfields and some chemical factories, but ultimately cooler heads will prevail – there is too much at risk for either country to make Syria their ‘Waterloo’.
Here’s the SharePlanner Reversal Indicator:
