Indicator is bearish, but may have signs of hope. 

Last time I published this indicator, I mentioned how there was a bearish divergence forming, and it turned out to foreshadow what we have seen this week. The frustrating part for me was that I actually had a short position on SPX and the darn thing stopped me out with the rally last Friday. That happens to the best of us though. However, what a great trade that could have been had I not been stopped. 

Nonetheless, the SharePlanner Reversal Indicator remains firmly in the bear camp, but it is hitting oversold conditions and more times than not, the bears don’t get too extreme with their selling, and instead reverses back upward instead. 

More times than not, these reversals are met with a sharp bounce, and unless something fundamentally shifts to the negative side with this market, I expect the same to be true yet again. 

Here’s the SharePlanner Reversal Indicator: