SharePlanner Reversal Indicator is hitting high levels of altitude lately. 

In times past, a bearish reversal would have usually led to respectable pullback in the broader market, but since the Fed took a heavy hand in the market since 2008, the bearish reversal signals can mean one of two things: Either a sell-off is coming or price action is simply going to consolidate. 

Due to the strength in the market over the past five years, I have come to expect that a bearish reversal should have the default setting of signaling a period of consolidation unless proven otherwise. 

Here is what we are seeing on the Daily SPRI:

SharePlanner Reversal Indicator Daily 11-20-14 

On the Weekly SPRI we seeing a similar signal. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 11-20-14

 

What does this all mean? For one, it means that the uber-bullishness that we have seen since October might be fading some and we’ll at least be returning to more of a two-steps forward, one-step back mentality by the market. Or it could mean that we are going to be stuck in a price range in the coming weeks. Finally, it may be signalling that a true bearish reversal/pullback is imminent in this market. 

We’ll just have to wait and see. 

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