Earlier today in the SharePlanner Splash Zone, I mentioned that that the daily chart of SPX was probably the healthiest I’ve seen it at any point this year. 

And the same can easily be said about the SharePlanner Reversal Indicator on both time frames. 

On the daily, you have the SPRI hitting extremes, but that can easily stay there for weeks at a time. The big thing for the market at this point is to not allow for any major sell-offs. 

Here’s the Daily SPRI:

shareplanner reversal indicator daily 2-12-15

On the weekly side of things, the SPRI continues to move higher after a myriad of reversals weeks ago. Now it is looking at possibly hitting the bullish extremes within the month. So there is a very good chance that this market can finish out the month strong and possibly hit new all-time highs in the days ahead. 

Here’s the Weekly SPRI:

shareplanner reversal indicator weekly 2-12-15

In summary, I’d avoid the short positions right now. The market is showing signs of a freight train mentality and you don’t want to get on the wrong side of things. If you are simply wanting to add one or two bearish setups within a portfolio of long positions, that is one thing, but there is no reason to be net-short this market at this point in time. 

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