The market is in a funk right now. Friday’s employment number gave a lot of traders hope that the market would make its way quickly to 2200, but that has not been the case, and is now on the verge of giving back all of last week’s gains. There are a number of moving averages at the 5, 10, and 20-day that could provide some support for stocks going forward. But right now, the market doesn’t seem to have much in the tank to propel this market one way or the other. 

We saw similar price action last August as well, and ultimately it resolved itself to the downside quite a bit. If that is to happen here again, then the price break will be very clear and obvious and reason to exit the market will be slapping us in the face. Right now though that isn’t the case so, I’m not looking to get heavily short, particularly when the market is as dull as it currently is. 

In the SharePlanner Reversal Indicator, there is a bearish reversal in place, but the question right now is whether it is going to continue correcting through time or eventually start selling off in price. For now the the former is happening and we have to go with that. 

Here’s the SPRI:

 shareplanner reversal indicator weekly 8-10-16