Last week’s sell-off hit extreme reading on the SharePlanner Reversal Indicator.
Following the bounce off of the 200-day moving average on the S&P 500, it is no surprise, that we saw one of the best one-week rallies in years. However, with a three-day weekend ahead of us, next week represents another chapter in what has been an incredibly volatile 2018.
I suspect that the SPRI will provide us with a bullish reversal early next week, which means this market eventually tests its all-time highs again. Should it not break through that barrier, there will be an incredibly interesting argument for a double top forming in the stock market.
All sorts of scenarios that could play out next week. In the meantime, I booked profits in two of my trades today, with Amazon (AMZN) bringing in 9.4%, after getting in last Friday at $1,328.20, and then I sold Caterpillar (CAT) at $158.12 for a 3.6% profit.
I will have some capital to put to work on Tuesday, should the bulls keep pressing their hand. However, I like the idea of going into this weekend on the light side of things, and keep the flexibility necessary to play this market, wherever it decides to take me.