• shareplanner reversal indicator 5-11-16

It shouldn’t be a surprise to anyone that the market is trying to sell-off today following yesterday’s beautiful rally. We are in that area of the charts where every rally over the last two-plus years has stalled out at. 

So yes, expect rallies in the 2040 to 2138 range to continue stalling out until it proves otherwise. 

That’s why all this week, I’ve been saying take profits aggressively. Yes, it could be a different scenario this time, where we in fact do not break down again and instead establish new all-time trading highs. But make the market prove it to you first. Don’t hold on to your winning trades too tightly, there are always more winning trades to be had, but what you don’t want to do is lose the profitable ones you have right now. 

With that said, the SharePlanner Reversal Indicator still suggests that there is more downside left to this market and that last week’s bounce off of the 50-day MA wasn’t the end of things. 

Consider this too… oil is RIPPING higher today following a very favorable EIA Petroleum report that said oil inventories actually went down this past week by over three million barrels, when analysts were actually expecting an increase. 

So here is the SPRI for this week. Read it, understand it, apply it!

shareplanner reversal indicator 5-11-16

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