Stocks setting up for further downside.

Phenomenal rally of late, but considering the overzealous nature of the market of late, and irrational behavior of the Robinhood Bro’s to keep buying the dip at a relentless pace, the SharePlanner Reversal Indicator is flashing reversal signs that further downside beyond what has been seen this week may be just around the corner. 

The reversal indicator below suggests an imminent pullback is upon us. When we don’t get such a pullback despite the signal, we usually see sideways chopping action. We’ve seen plenty of that going back to April 9th where the market has done nothing but trade sideways for over a month now. 

There’s a ton of confident traders, and the ones that are screwing it up, well, they are just holding on for dear life believing that the stock market is the ultimate forgiver and that risk can be ignored and all bad trades can be made whole by the grace of the stock market itself. 

A cleansing is coming to this market. Whether it is in sync with the SharePlanner Reversal Indicator or not, remains to be seen, but I would not be betting heavily long at this juncture. 

Here’s the SharePlanner Reversal Indicator: