LOOKING FOR THE 1ST SIGN OF A TOP??? HERE YA GO!
Let me skip all the descriptive mumbo jumbo of today’s action because we have a potential reversal and that’s why YOU NEED TO READ THIS!
If you have been a loyal reader of our post you will know that we’ve been bulls and “buying dips”. Today that has changed.
Today’s price action in technical terms is called a “key reversal”. What does that mean? This could be the first technical sign of a top. Why? The price action today: we created a higher high, we produced a lower low and we had a lower close than the previous day. Look at the chart it’s easier.
This is a bearish reversal. So here is the game plan, you want to sell rallies until this reversal is negated or in my opinion the 1332.00 level is taken out. Where would you look to sell it hot shot? CFRN members I want you to look at your “Sentiment Indicator” tonight that will give you your first clue. Don’t have this indicator? Join us in our LIVE “training room” for the FREE Trial. Also a kickback against the 1322.00 level in the SP Emini cannot be ruled out and I would view this as another selling opportunity. Big picture stuff! Anyway you slice it, your risk at this point is going to have to be back above the 1332.00 level. If the SP Emini stays on the path that its created then were going to look for targets at the 1247.00 level then 1200.00.
Stay alert stay Alive
Burton R. Schlichter
Senior Market Strategist
Between the Lines
At the close of the Public Broadcast today we suggested a short at 1312 (Arrow #1). A dilligent CFRN Partner pointed out the possible turbulence just below at the 1309/1310 Weekly Trading Zone. I had failed to drop that Zone on this particular chart. As it turns out, all went well either way. The take away is this - it's good to know you have someone watching your back and your bottom line. If you're trading alone, you don't have to. We invite you to become a part of our community today.
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