Probably a couple of weeks away from a bullish reversal on the indicator.

The month of August has had its downs, but more than that, it has been extremely choppy, leaving little room for direction that traders can seize upon. For three weeks now the stock market has been nothing more than a royal chop-fest. Even today, the market showing signs of breaking out of the range then resolved itself to sell-off more than 30 points to push the indices across the board into the red. 

And now of course, we have an intraday bounce. Initially  it looked like it would be a dead cat bounce, but has managed to erase the losses on the day. With all of this being said, SPX remains stuck in a three week range that has yet to truly provide any hard direction going forward. In fact the best move of late has been to fade the moves at the extreme ends of the range. 

I’m actually doing that right now with a position in SPXU that I took today, following the market bounce, but, I probably should have been a little more patient with that trade as well, as I am currently a small amount in the red. 

Here’s the SharePlanner Reversal Indicator: