• SharePlanner Reversal Indicator Daily 6-11-14

SharePlanner Reversal Indicator at bullish extremes

On the daily, for the second consecutive week it is at upper extremes which tends to indicate a bearish reversal could happen shortly. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 6-11-14 

On the weekly, just as with the daily we are seeing bullish extremes there as well. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 6-11-14

In the end, the obvious translation from these two charts is that the market is at some very bullish extremes – extremes that typically sees some level of profit taking. That doesn’t mean it won’t still move higher still in the short-term, but it does mean that you might to lighten up on the long exposure some, so that when a pullback does occur, you minimize any losses and you have the capital to buy stocks that are providing great opportunities on the pullback. 

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