Bulls still maintain full control.

Heck, I am pretty sure when you have rallied eight of the first nine trading days of the year (SPX), you are in pretty good standing on the technical side of the trade. 

However, the SharePlanner Reversal Indicator suggests that while everything is fine right now, there is the potential for a bearish reversal in its indicator in the next week or so.

I’ve said this plenty of times before, but in a strong trending market like we have here, it can mean one of two things: 1) Either we sell off, and see a respectable pullback, or 2) We consolidate through time, the latter of which has happened plenty of times in the recent past. 

But with the non-stop rally nature of this market, and the lackadaisical attitude among traders at this juncture, I could easily see us undergo a pullback of 2-4%. Not saying it is a certainty, but with the headline risk that it out there, and earnings season coming up, we are priced for perfection. If you see some misses, it could be enough to get this market seeing red again. 

For now, don’t try to time it, let it come naturally, and then as the market shows signs of weakening on the daily chart, that is where you want to be looking at possibly shorting the market.

Not before!