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I Don't Trust The SPRI Signals

Published 06/25/2015, 01:27 AM

On the daily, you have a fantastic looking reversal underway, however, we have seen of late, where it doesn't take much for a false reversal to take place. So the daily needs to see rapid expansion out of the bottom area of the chart below to confirm the move is legit.

Here is the Daily SPRI:

Daily SPRI

On the weekly, we have one of the less graceful reversals that we have seen in some time and I wouldn't be surprised either, considering the behavior of the market, if this reversal never gets quite off the ground.

Here's the Weekly SPRI:

Weekly SPRI

I recognize that I come across as a bit distrusting of the move being made in the SPRI, and I may very well be wrong. However, what is propelling me in large part is the action we have seen from the broader market over the past five months in, where price has been very unreliable and unable to break out of a very, very small range.

That is why I am not overly trusting of the SPRI signals at this time. Trust me, it would be very easy for me to just be a blind buyer like so many other websites out there seem to be doing, but the behavior of the market so far this year warrants prudence and to recognize that risk has become much more magnified of late.

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