We had a very light and shallow sell-off last week, and sometimes that is as good as you will get in a monster rally like we are in.
When the bears have every opportunity to kill a rally and pull the market back some and they fail to do so, that isn’t the time to double down on your short bets, instead it is time to take the profits (if you have any) and move on. Because now the market has given itself a smidge of breathing room, and in a rally like we have seen of late, that is sometimes all it needs to keep the momentum going.
On the SharePlanner Reversal Indicator, we are no doubt in the “extreme” zone, but no selling is coming on line, and no the reversal hasn’t been signaled yet. So if you are a bear, you have to practice some patience and not get ahead of yourself, hoping that the market will give you something it hasn’t given any sign of giving as of yet.
Here’s the SPRI: