The latest rendition of the SharePlanner Reversal Indicator:

On the daily side of things, we have hit extremes but no reversal to the upside as of yet. Very little downside movement so far out of SPX since we got the downside reversal signal. In fact the best thing the bears have going for it is the S&P 500’s unwillingness to break through 1873. However that won’t be a problem for long, if the bears don’t take advantage of the weakness and drive price below 1850 and then 1839.

Here’s the Daily SPRI: 

SharePlanner Reversal Indicator Daily 3-26-14

On the weekly we have a full blown reversal underway. This is the dominant indicator and it can continue to push lower as it is indicating to be doing regardless of the fact that the daily is hitting the extreme lows. The daily instead of reversing to the upside will try to consolidate and remain flat at the lows. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 3-26-14

So pay the most attention to what the weekly is saying here. That is what’s flashing the risk for this market at this time. The daily might be flattening out here, but until SPX 1873 is broken, the market will continue to distribute as it has for the past month with the potential to eventually break down. 

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped