It has been a while since I’ve seen an extreme reading on the SharePlanner Reversal Indicator.

In fact, the last one was back in February of this year. 

That is mainly due to the reality that there have been very long periods of sideways trading action in the market.

With the S&P 500 rallying 6 of the last 7 weeks, and the Russell Index making more than a 10% move over the last two months, it isn’t surprising to see the SPRI hovering at the extremes. 

And just because it sits at extremes, doesn’t mean that it must sell-off immediately. In fact it can hover there over the next few weeks. What has also been common in this market, is to see the subsequent bearish reversal SPRI, jump start an extended period of sideways trading rather than a major sell-off. Over the last year, that has been the case every time. 

So don’t go selling your stocks just yet. I think there may still be more upside to this market. Just wait for the market to show you conditions are changing. No need to front run it. 

Here’s the SPRI: