It seems to me that anytime there are multiple days of selling in a row, that traders en masse proclaim that the market has reached a top – or better yet, they give you a ten reasons why you should believe the market has topped. 

But let’s look at what’s really going on in this market by looking at the SharePlanner Reversal Indicator and go from there. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 9-24-14 

On the Weekly SPRI, I am still holding to the notion that the chart will reverse early to the upside before actually testing the extremes, particularly with the Daily SPRI signaling a bullish signal in the days ahead.  

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 9-24-14

 

In all, I am remaining long on this market, particularly since SPX has yet to break the 1978 price level which would create a lower-low. With that said, I am not uber-bullish, but do believe a few positions in 10% increments of my portfolio is reasonable at this juncture. 

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