Is it time to reverse for the market or will we keep trucking higher? 

I came into today knowing that the bulls had to hold the 20-day moving average. That has been a level of support for them of late, and if they blew through it, that things could certainly get dicey. 

I covered my one short position in Intel (INTC) yesterday for a 2.1% profit and still have a nice profit in my TLT position too. The bulls held the 20-day moving average today and as a result I added a couple of new positions to the portfolio – both of which are performing nicely. 

Stocks Watch List

But then when you look at the SharePlanner Reversal Indicator, there are some problems there that could come into play soon. For one, we are nearing extremes, but the bulls also seem to be slowing down some and running out of steam with the SPRI starting to curve and flatten out its slope some. If this continues, then we could easily see a bearish reversal in the next 2-3 weeks. But often the case with bearish reversals, it doesn’t mean that we get a massive sell-off, rather we get a choppy market that trades sideways until the market can work off overbought conditions. 

Here’s the SharePlanner Reversal Indicator:

reverse time

 

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