DecisionPoint

DP Bulletin #2: SPX and OEX Garner New Short-Term Trend Model BUY Signals

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The SPX and OEX both triggered new ST Trend Model BUY signals as the 5-EMAs crossed above the 20-EMAs. However, the charts are less than impressive. 



We are seeing new strength on the DecisionPoint Scoreboards with four new PMO BUY signals and now 3 out of 4 indexes carrying ST Trend Model BUY signals. Yet, note on both the SPX and OEX below, price has not been able to penetrate the declining tops trendlines. I'd feel a whole lot better if these signals were arriving on a breakout. The OBV isn't making new highs in the short term either. Given the intermediate-term signals on the Scoreboards are bearish, I'm not ready to get on board the rally to all-time highs train. For me, optimistically, we are in a consolidation phase that isn't over yet. These new buy signals could be signaling an end to the correction, but I'm seeing it more as a short-term rally/reprieve until the next test of the 200-EMA or February low. 


Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin


Helpful DecisionPoint Links:

Erin's PMO Scan

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking


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Erin Swenlin
About the author: helped create and manage the DecisionPoint.com website alongside her father, Carl Swenlin. Together, Erin and Carl launched the DecisionPoint daily blog in 2009. She hosts the MarketWatchers LIVE web show at StockCharts.com, and is also a Member of the CMT Association. Learn More
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