Bullish signal on the reversal indicator confirmed

Last time we had a bullish reversal was back in mid-November when the market had been flat-lined for about a month. Once the signal took hold, the market rallied 300 points to the January highs, before the bearish signal finally took hold and gave us one of the most dramatic pullbacks in years.

Up until today, the bears were flexing their muscles, once again, with three straight days of selling and over 100 points lower on SPX. Now with a reversal on the SPRI, we are seeing some buying interest re-emerge in the market today that may try to definitively take this market higher into the close. 

The one thing I didn’t see this week, was the panic that was in the  market back in early February. Early February people from every where were calling my cell phone, hyperventilating about what they should do. But with the current selling of the past three days, the pullback has been taken in stride.

I spent the latter half of this week in cash, and only traded sparingly.

Today I dipped my toes in the water with one new trade to the long side, once the market showed it wanted to bounce. But I’m not going to get too heavy as we head into the weekend. I want to stay light and build up the portfolio next week, if the market will allow. 

Here’s the SharePlanner Reversal Indicator: