• SharePlanner Reversal Indicator Daily 9-4-14

Exhaustion isn’t necessarily a bad thing for the markets to experience

It just means that the current trajectory of the markets can be sustained. In fact it can easily be said that what we have seen over the last seven trading sessions has been a form of exhaustion in and of itself. 

The theory of the market being exhausted is very plausible on the Daily SharePlanner Reversal Indicator as we are hitting short-term extremes on it. 

Here is the Daily SPRI:

SharePlanner Reversal Indicator Daily 9-4-14

On the Weekly SPRI that shows that it is just starting to enter the range in the market where it can either continue to go up or experience exhaustion of some form. Assuming that the Daily SPRI experiences the latter, there is enough room for the Weekly to digest such a move and still have additional room to climb once the daily reverses to upside again. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 9-4-14

 

The key to this market is to keep following the path that it has laid out for us. You don’t have to get ultra long or ultra short here. Instead lighten up when the market suggests doing so. I for one have been much lighter to the long side of late than I was over the past month. 

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