The SharePlanner Reversal Indicator is onto something here.

On the SPRI you have matching reversals on both the daily and weekly time frame. A few weeks ago, I mentioned that the SPRI needed to break out of the base of the past few months and today it is doing exactly that. 

Here is the Daily SPRI:

SharePlanner Reversal Indicator Daily 7-15-15

On the Weekly SPRI, you have one of the more unusual bullish reversal patterns, but nonetheless, we waited for the extremes to hit, they did, and now a legitimate reversal signal is flashing here. 

Here is the Weekly SPRI:

SharePlanner Reversal Indicator Weekly 7-17-15

Overall, the market has definitely seen its share of selling of late, though not epic by any means, it was enough to respect. But now much of those losses have been recovered including the big sell-off going back to 6/29. Once again, this is why, when you are short, you have to be quick to book the gains when you have them. Don’t try to ride a major trend-line down. Eventually the bounce will come and it will kill your profits. 

So, with the uptrend in place and looking to make a run towards new all-time highs, I think getting behind this rally, if you haven’t already done so, is absolutely key. 

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