SharePlanner Reversal Indicator showing uniform bullishness

The daily SPRI is showing an extreme reading, but just because there is an extreme reading doesn’t necessarily mean that a top is in the market, as it often will spend 1-2 weeks in that area. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 2-5-14

On the weekly the picture is even more bullish as it has managed to put in somewhat of a cup and handle pattern off of the lows and make the third reversal the one that counts. I expect this, with the favorable market technicals to send the market higher in the short-term. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 2-5-14

At this point I would avoid adding new short positions and covering those that you might still be in. Yes, there is plenty of risk still in this market but we have a solid response from the bulls to yesterday’s end of day sell-off. So stay nimble, don’t get 100% long per se and keep yourself in a position to not  be affected by any continued volatility that this market might present us with. 

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