• bears need to come back and short this market

The SharePlanner Reversal indicator suggests the bulls might not be out of the woods just yet. This week it is flashing an early reversal which really comes as no surprise following the massive sell-off on Friday and then again on Monday after the Brexit vote.

bears need to come back and short this market

Now the market is on an impressive two day rally and has the bulls thinking that the implications surrounding the Brexit vote is behind us. But I do believe that caution is still greatly warranted. Rarely do you see a 1,000 point drop on the Dow or 100 points on SPX and suddenly think that all is fine in the world again. Instead you usually see the bears re-emerge in an attempt to push the market lower again. 

It has become quite normal for there to be a 50-80 point ramps higher following a hard sell-off. I don’t seen anything special about what has taken place over the past two days, and considering the fact that we are in this awful trading range the past two years, and the market tends to sacrifice itself everytime we inch above 2100, doesn’t make me think too highly of it going forward either.

So for me, I’ve rode this market higher the past two days – it was a nice run, but if we really want some nice setups to play out, then you want the bears to comeback to the table and jump-start the selling again. 

shareplanner reversal indicator 6-29-16

 

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