SharePlanner Reversal Indicator is at the extremes on both times frames.

On the Daily SPRI you have price now for a second consecutive week sitting at the bullish extremes and that shouldn’t be all that surprising considering the fact that SPX has rallied over 100 points so far this month. I expect that the Daily SPRI could easily sit at the extremes for another week or so. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator Daily 2-19-15

On the Weekly SPRI, the indicator is just now finally reaching the extremes. It doesn’t seem to be close to moving off of them anytime soon, which could give the market more room to run. But after about a week or so, it wouldn’t shock me to see the market start getting a little more choppy and consolidate the market’s move for the month. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 2-19-15

Overall, I’d stay away from the short positions. Even a hedge at this point really isn’t going to provide any real value. I’d wait first for signs that the market wants to give back some of the recent gains and then act accordingly. Right now, the down days are fractions of a point, and the days that the market finishes higher are in excess of 10 points on average. 

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