My reversal indicator is still providing me with a very strong bullish reading.
As a result, I remain bullish on the market as a whole, but in a tepid fashion. I’m not going out and buying everything I set my eyes on, in fact, I am trying to stay away, as much as possible from the very high beta stocks and focusing solely on the large caps (not that there can’t be high beta, large caps). I am incrementally increasing my long exposure as the market improves, but not all at once.
The SharePlanner Reversal Indicator below remains quite bullish following its reversal signal a few weeks back. Though this week has taken its toll on the chart and showing signs of the indicator flat-lining earlier than expected, once today’s price action is factored in, it should help to straighten it out some.
And the 200-day moving average – my goodness that thing is rock solid. Tested it again today, and once again it held. I won’t lie, I look at each new test of the 200-day and say to myself, “No way SPX can hold up on another test!”
But it does!
It is really quite amazing, if you ask me. But the less it can test it going forward, the better off this market will be.
Here’s the SharePlanner Reversal Indicator:
