Overall the week has been a good one for the market, and it’s much needed, following its flirtation last week of a break of the 200-day moving average (SPX).
Honestly, I thought this week’s rally would have fixed a somewhat problematic trend developing in the SharePlanner Reversal Indicator, but it didn’t. Instead, the slight bend in the indicator from last week, worsened a great deal more this week.
Now, the SPRI is looking at a possible bearish reversal signal next week, unless it pulls it together and rallies in similar fashion to what we saw this week.
So there is reason to hold out hope that next week the SPRI will work things out, but if we see even a little bit of weakness, it should be enough to signal that bearish reversal in the market.
Here’s the Reversal Indicator:
