• SharePlanner Reversal Indicator Daily 8-21-13

This has to be the most emotionless sell-off I’ve seen in some time.

We are 65 points off of the highs of this market (SPX) and despite that, the bears seem to be unmotivated and lethargic to the price movement, and the bulls seem to remain unconcerned. Instead the latter just seems content with waiting out the selling and positioning self up for the assumed bounce to new highs.

While I always appreciate a good bear market to short, this is clearly not the one for me. while some temporary gains can be made, doing it against the backdrop of the Fed’s continual intervention in the markets as a whole makes shorting the market a high risk proposition until the charts clearly indicate otherwise – and that isn’t happening right now.

With that said, in last week’s iteration of the SharePlanner Reversal Indicator, I was concerned that the bears had missed the window of opportunity to push this market lower, as it had only consolidated up to that point, but since then it has done nothing but sell-off with the Dow looking at a sixth straight day of trading lower.

The Daily SPRI is showing an overextended market and one that’s selling might be bottoming out here:

SharePlanner Reversal Indicator Daily 8-21-13

The weekly suggests there may be room for improvement but the reading is somewhat the same as the daily rigtht now:

SharePlanner Reversal Indicator Weekly 8-21-13

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