After a couple solid weeks in the market, it was easy to put the market weakness that proceeded it behind us and believe that greener pastures lied ahead. But it only took one day to re-instill that fear into the markets. With Thursday’s sell-off, we got a healthy reminder just how far and fast this market could sell-off when it took a liking to it. On the daily chart of the SPX we have a clear uptrend that is in place, and unless we break below 1306, I’m holding that bias. On the weekly chart below, you’ll see that we have a bearish-looking flag that is forming and we need to really see a healthy bounce to put to rest that developing chart pattern.
Here’s the SPRI.
For those of you who are not familiar with the SharePlanner Reversal Indicator, here’s a quick tutorial…
