If you remember from two weeks ago, the SharePlanner Reversal Indicator had gone from flashing a bearish signal to another bullish signal.
The problem was that this signal was at the top of the range and I had my doubts about its legitimacy. Fast forward to today, where the market is working on its second straight week of weakness and now you have that recent bullish signal starting to weaken yet again and on the verge of reverting back to the original bearish signal.
Okay, if you are still with me, here is what I know: This kind of choppiness on the SPRI can often lead to some major moves regardless of what end of the spectrum it occurs on. No doubt there has been some choppiness of late, so if the confirmation to the downside does take place this week or next, then I would suspect a move into the 1900’s will take place in the short-term.
Here’s the SPRI:
