Another week of mixed signals on the SharePlanner Reversal Indicator.

Sometimes these things take time to shake themselves loose. Right now on the Daily SPRI you have an imminent bullish signal that could occur any day now. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 1-22-14

On the weekly, you have yet another mid-stream reversal, which honestly isn’t all that surprising and is why I’ve said before that the early reversal signals are often times a false reading that ultimately heads back to the nearest extreme, and that is exactly what we have happening here. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 1-22-14

So what does that mean for us as traders? 

At this point, you trade light. The market is unsure of itself – that is highlighted by the fact that the SPRI is shooting mixed signals on two different time frames. However, personally, the bias still seems to be pointing upward, and the Daily SPRI is the cleanest of the two time frames. Until the weekly SPRI can resolve itself, the Daily SPRI is the one that should be leaned on. 

 

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