It is another one of those blasted Fed days where you are left sitting on your hands not making any moves in the market until the annointed Fed Chairman delivers her blessing or curse on the market. 

While we wait, let’s take a look at the SharePlanner Reversal Indicator and see what it has to say this week. 

On the daily you have a full blown reversal underway. Now, let it be said, it hasn’t been a very powerful one as we saw a little bit of selling last week but nothing since. Nonetheless, some caution is still warranted. 

Here’s the daily chart:

SharePlanner Reversal Indicator Daily 3-19-14

On the weekly, we finally received the long awaited reversal we have talked about for weeks, and this reading is much more power than what we get out of the daily. Here you have a reversal that suggests the mild selling we saw last week is only the beginning wave of more selling still to come in the S&P 500. 

Here is the weekly SPRI:

SharePlanner Reversal Indicator Weekly 3-19-14


So what to do you ask? I wouldn’t jump the gun and make any brazen decisions. I am mildly long on this market right now – 4 longs and 1 short. Easy to flip and go the other direction. We are clearly bouncing right now in the market, and how long that lasts I do not know. But what I do know, there is little reason to be net short while the market continues to move higher. 

Perhaps today’s FOMC will create a change in character. Who knows!?!

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