SharePlanner Reversal Indicator: Points Towards More Downside
The market had one of its worst weeks in quite some time, and I have to admit, it doesn't appear to be looking much better according to the SharePlanner Reversal Indicator, which is pointing to further downside to come in equities.
Granted there have been a high amount of reversals in recent weeks on the SPRI, but no other reversal has shown the aggressiveness to the downside like we saw here.
By no means do I think we load the boat on the short side - this is a tricky market and likelihood that we see a bounce in the near term is very high. But just because we are ripe for a bounce in equities, doesn't mean that we don't ultimately head lower and that is what the SPRI is forecasting here. As a result, be patient for the short-setups, look for opportunities that take advantage of stocks that rise into resistance with a clear bearish pattern overall.
Here's the SPRIndicator indicating current market direction.