• SharePlanner Reversal Indicator Daily 1-29-15.pnge

The SharePlanner Reversal Indicator charts are both pointing up but are both on shaky ground. 

The Daily SPRI is in the latter parts of its move, and nearing what could be some resistance before reaching the extremes. 

Here’s the Daily SPRI:

 SharePlanner Reversal Indicator Daily 1-29-15.pnge

The weekly SPRI is in rare territory as it has just incurred its third reversal without hitting its extreme. Looking at the last four years, this has only happened one other time and it was in the fall of 2013 but inversely to what we are currently seeing in the chart below. It eventually followed the pattern to the downside for a period of two weeks. 

Here’s the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 1-29-15

This market is one that favors those who are fading the multi-day moves. That’s a tough proposition to make though as it requires you to step in front of a freight trading when the market is rallying and to catch the knife when it is falling. At which point do you stop catching that knife if it continues to cut and cut and cut you again and vice-versa? 

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