Over the past couple of weeks, I’ve tried to remain some what cautious about getting overly long on this market. I stayed away from maxing out the portfolio and kept plenty of cash handy. 

And I am glad I did!

 

While yesterday was no fun to be in any stocks of any kind, it could have been far worse had I maxed out my capital with long positions, or worse yet, dipped in to margin. 

The SharePlanner Reversal Indicator below, forecasted a sell-off like this two weeks ago, when I posed the reversal then.

Today, the reversal is well underway. Of course there will be a bounce at some point next week, good chance it is even Monday. Then the question becomes whether it is a “V-shaped bounced” to new all-time highs again, or is it just a dead cat bounce that ultimately  leads to another leg lower. 

The proof will be in the candle sticks, and what they do going forward, so stay tuned. 

Here’s the SharePlanner Reversal Indicator: