As previously mentioned in the last update of the SharePlanner Reversal Indicator, I said that I wouldn’t be surprised if we saw an extended period of consolidation instead of a full blown bearish reversal like the charts suggested. 

Well a week later, and the daily indicator has bottomed out which means the bears missed out on a great window of opportunity. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 7-16-14

On the weekly side of things, the SPRI is more than 1/2 way through its bearish reversal, and  at this point, I think it is best to conclude that the bears can only hope for more consolidation at this point. We have been over three months now without a 1% move or greater in the S&P 500 and the volatility is at seven year lows. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 7-16-14

As a result continue, I’ve been saying all along to trade to the long side, until we see price breakdown and create some technical damage on the market, followed by a consistent pipeline of bad news hitting the market, I see very little reason to be short of anything at this juncture. 

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