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SharePlanner Reversal Indicator: Bearish Reversal In Place

January 28, 2014

Ryan Mallory

The SharePlanner Reversal Indicator is glaringly bearish. On the daily chart the SPRI has the downtrend in full effect. However, the problem becomes the fact that we saw support kick in yesterday at the rising uptrend off of the lows from November of 2012. That is a significant trend-line that has seen support come in time and time again. Here's the Daily Chart : On the Weekly SPRI the story is the same. Testing that long-term trend-line on the weekly SPX chart while the SPRI has a brand new bearish reversal confirmation. Here's the Weekly SPRI chart . Something has to give - I can see a bounce higher from here in the short-term and then an ultimate resumption of the downtrend after that. Or perhaps this signal simply leads to more consolidation until it can wear off the bearish reversal indicator. Either way it clearly is not bullish.

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Source: Shareplanner

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