Now is the time that you want to be on guard with this market as the SharePlanner Reversal Indicator on both time frames is sitting on extremes. 

On the daily, we have the second consecutive week of extreme readings. It won’t take much to get a bearish reversal signal out of it. 

Here’s the Daily SPRI:

shareplanner reversal indicator daily 2-25-15

On the weekly you have the same exact reading. Now, unlike the daily it can sit in the extreme area for a lot longer time due to the time frame the chart is based on. However, once you get it on the weekly time frame you will also have it on the daily, and that will mean that it is time to jump ship. 

Here’s the Weekly SPRI:

shareplanner reversal indicator weekly 2-25-15

Overall, when both of these time frames confirm, that will be your signal to lighten up on the long positions, and if the charts on the SPX are showing some weakness as well, to go ahead and add one or two positions to the short side.

But we are not at that point yet. Eventually we will, but for now the market is still pointing higher and we have to trade that way accordingly. 

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