Another week of differences between the Daily and Weekly SharePlanner Reversal Indicator.

The daily is showing itself to be on the verge of a full-on bullish reversal, which will look great with the current price action, if SPX can push back above 1890, preferably 1900 on the S&P 500. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 5-21-14

But here is where things start to get tricky, and that is with the Weekly SPRI, where there was an earlier-than-usual bearish reversal. What concerns me with it though is that the reversal comes amid a directionless market where a bearish reversal could easily come prematurely as well. Just take for instance the early reversal that happened in March of 2013 and how soon there after, in the midst of similar consolidation, the Weekly SPRI quickly reversed yet again. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 5-21-14

 

So the best thing to do here is to respect the consolidation this market is currently showing. Don’t force anything. Keep the stop-losses tight, and when we finally do breakout to the upside or downside, the SPRI should align itself nicely on both time frames. 

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