{"id":23481,"date":"2013-04-08T08:45:44","date_gmt":"2013-04-08T12:45:44","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=23481"},"modified":"2016-09-20T19:53:43","modified_gmt":"2016-09-20T23:53:43","slug":"key-reversal-indicator-kri-update","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2013\/04\/08\/key-reversal-indicator-kri-update\/","title":{"rendered":"Key Reversal Indicator (KRI) Update"},"content":{"rendered":"<p>It has been an interesting start to the year as volatility has dropped and buyers have thus far been buying every dip, no matter how shallow or deep. The Key Reversal Indicator (KRI) has not shown any significant areas of concern toward oversold or overheating so far.<\/p>\n<p style=\"text-align: center;\"><a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/andrewhorowitz\" data-show-count=\"false\">Follow @andrewhorowitz<\/a><script type=\"text\/javascript\" src=\"\/\/platform.twitter.com\/widgets.js\"><\/script><\/p>\n<p>While there were a couple of times that it appeared that markets were getting toward the upper end of the range (from this indicator&#8217;s perspective) in 2013 it has not risen to a level that would be <!--more-->showing that an immediate reversal was in the cards.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-23482\" alt=\"kri_guage\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2013\/04\/kri_guage-1.jpg\" width=\"282\" height=\"310\" \/><\/p>\n<p>The current reading is &#8220;Market in Equilibrium&#8221; and that moved down on Friday from a slight overheated level. It is important to include the recent history into the equation and can therefore consider the market somewhat <em>hot<\/em> as it has yet to digest all of the recent readings above equilibrium.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-23483\" alt=\"kri\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2013\/04\/kri-1.jpg\" width=\"535\" height=\"327\" \/><\/p>\n<p>Since the end of February, there has been only one reading that was indicating a heightened level of warning that the excess <a title=\"FROTH ALERT: Spearman Indicator Peaking, Candle Studies Alert and Z-Score Out Of Range\" href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/2013\/02\/17\/froth-alert-spearman-indicator-peaking-candle-studies-alert-and-z-score-out-of-range\/\"><strong>froth was ready for some selling pressure<\/strong><\/a> to come in. That played out well over the next few days. However, since then there has been very little to relieve all of the recent buying pressure, even though the KRI levels have not increased.<\/p>\n<p>Below is the longer-term view along with the S&amp;P 500 index. Notice that it is the cases of extreme outliers that we are looking for. When the KRI moves well above level 3 or below -3, the likelihood of a quick reversal of trend is evident and portfolio positions should be ready to be reversed or hedged.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-23485\" alt=\"KRI_LT\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2013\/04\/KRI_LT-1.jpg\" width=\"574\" height=\"323\" \/><\/p>\n<p>For now, major U.S. market indices are consolidating and the next directional move could come at any time. With the recent history of the KRI, the odds are in favor of selling pressure increasing moving forward.<\/p>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><em><strong>Live and Alerting <\/strong><\/em><\/h1>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.triggerpointresearch.com\/subscription\/signup\"><img loading=\"lazy\" decoding=\"async\" title=\"tpr\" alt=\"\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2013\/04\/tpr-4.jpg\" width=\"334\" height=\"73\" \/><\/a><\/p>\n<p style=\"text-align: center;\">(<strong>Click the above for more information<\/strong>)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It has been an interesting start to the year as volatility has dropped and buyers have thus far been buying every dip, no matter how shallow or deep. The Key Reversal Indicator (KRI) has not shown any significant areas of concern toward oversold or overheating so far. Follow @andrewhorowitz While there were a couple of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,42],"tags":[483,490],"class_list":["post-23481","post","type-post","status-publish","format-standard","hentry","category-markets","category-stocks","tag-markets","tag-stocks","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/23481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=23481"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/23481\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=23481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=23481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=23481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}