The SharePlanner Indicator is showing signs that the current market rally that began off of the 12/18 lows may be getting exhausted. If that is the case, it becomes much more critical for the S&P 500 to establish new highs in the short-term as soon as possible. 

On the daily it is currently at extremes – and it can stay at extremes for a while but for it to do so, it needs a strong push out of the index in the short-term. 

Here’s the Daily SPRI:

SharePlanner Reversal Indicator daily 1-8-14

 

On the Weekly SPRI, the chart is still showing the longer-term trend in a healthy bull mode, but there is a possibility that it may be maturing – but before there is a legitimate reversal in the SPRI it would not likely be less than a few weeks away still. 

SharePlanner Reversal Indicator weekly 1-8-14

So in all, stay patient, there’s no reason to get short any time soon. Trade what the market favors and right now that is to the long side. 

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