SharePlanner Reversal Indicator is showing mixed signals which is the first signs that the bears have probably lost their chance at controlling this market.

On the Daily SPRI, you have the indicator flashing a bullish signal.

Here’s the Daily SPRI:

shareplanner reversal indicator daily 3-20-15

 

On the weekly, you still have the downtrend intact, but there is likely a weakening under the surface, especially considering that today’s rally isn’t even factored yet into the chart below. As a result, further strengthening of this market could see us with a early reversal signal in the Weekly SPRI next week or the week after.

Here’s the Weekly SPRI:

shareplanner reversal indicator weekly 3-20-15

So what do we make of all this? Tread carefully to the short side. While this week has been good for the market, the volatility remains. Big moves up are met with heavy retractions, though the majority of the gains still holds. And much of the moves to the upside are happening overnight, meaning if you are short, you will be slammed with a gap higher in the morning. The opportunities to send this market lower, has been golden for the bears. The euro has dropped hard, oil keeps falling, yet, the opportunity was completely missed by the shorts. And conditions are not getting any more favorable for the bears either. That is why, it is probably best to turn your focus to the bullish side of the market.

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