There are not too many time recently that the Key Reversal Indicator (KRI)has moved to level 5. This is telling us that there is quite a bit of excess froth from buying pressure that has recently built up.
The overall market, as measured by the KRI algorithm, is nearing a critical level of being overheated. The potential for a Key Reversal is high over the next few days.
Caution with respect to long side is warranted. Evaluate long positions, tighten stops and consider reducing overall long exposure or hedge out risk in the near-term.