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Wednesday, October 18, 2017 9:00:58 AM
DP Alert: Is the Rally Exhausted? - PMO BUY Signal on Bonds
By: Erin Heim | October 17, 2017
Teflon rally, perma-rally, overbought rally, irrational exuberance...whatever you call it, our indicators are suggesting at a least pause in the action, if not a pullback. Looking at the DP Scoreboards, we see all green arrows (buy signals) except for the IT PMO signal on the NDX. Although the NDX's weekly PMO is rising, the margin remains somewhat wide between it and its signal line as you can see in the weekly chart of the NDX below.
SIGNALS: Here we include charts of any important signal changes triggered today by our Intermediate-Term Trend Model.
NO NEW SIGNAL CHANGES TO REPORT.
STOCKS
IT Trend Model: BUY as of 11/15/2016
LT Trend Model: BUY as of 4/1/2016
Today a new all-time high was set for both the SPX and the SPY. Looking at the 10 minute bar chart, we can see that for the last three days price has been essentially moving sideways.
The SPY chart displays healthy indicators and support being held along the top of the longer-term rising trend channel.
Ultra-Short-Term Indicators: Carl wrote about a possible buying exhaustion shaping up on Friday. Notice that despite new all-time highs being set, the Net A-D data shows declines led advances. The Bollinger Bands on the VIX are so thin, I don't think they're particularly helpful but you could make a case for some bearishness given the rising VIX today. It appears to me the market is exhausted.
Short-Term Indicators: Notice that the short-term indicators have both topped. This would suggest lower prices in the coming week or two.
Intermediate-Term Indicators: These indicators certainly suggest the market is exhausted and will likely be turning over.
Conclusion: Despite setting new all-time highs, the indicators are suggesting the market is exhausted. I would expect to see a pullback very soon. Not convinced we'll see a correction given the rising PMOs, but a pause or pullback makes sense.
http://stockcharts.com/articles/decisionpoint/2017/10/dp-alert-is-the-rally-exhausted.html
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****************************************
*** For Market Direction and Trends visit our board:
https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
By: Erin Heim | October 17, 2017
Teflon rally, perma-rally, overbought rally, irrational exuberance...whatever you call it, our indicators are suggesting at a least pause in the action, if not a pullback. Looking at the DP Scoreboards, we see all green arrows (buy signals) except for the IT PMO signal on the NDX. Although the NDX's weekly PMO is rising, the margin remains somewhat wide between it and its signal line as you can see in the weekly chart of the NDX below.
SIGNALS: Here we include charts of any important signal changes triggered today by our Intermediate-Term Trend Model.
NO NEW SIGNAL CHANGES TO REPORT.
STOCKS
IT Trend Model: BUY as of 11/15/2016
LT Trend Model: BUY as of 4/1/2016
Today a new all-time high was set for both the SPX and the SPY. Looking at the 10 minute bar chart, we can see that for the last three days price has been essentially moving sideways.
The SPY chart displays healthy indicators and support being held along the top of the longer-term rising trend channel.
Ultra-Short-Term Indicators: Carl wrote about a possible buying exhaustion shaping up on Friday. Notice that despite new all-time highs being set, the Net A-D data shows declines led advances. The Bollinger Bands on the VIX are so thin, I don't think they're particularly helpful but you could make a case for some bearishness given the rising VIX today. It appears to me the market is exhausted.
Short-Term Indicators: Notice that the short-term indicators have both topped. This would suggest lower prices in the coming week or two.
Intermediate-Term Indicators: These indicators certainly suggest the market is exhausted and will likely be turning over.
Conclusion: Despite setting new all-time highs, the indicators are suggesting the market is exhausted. I would expect to see a pullback very soon. Not convinced we'll see a correction given the rising PMOs, but a pause or pullback makes sense.
http://stockcharts.com/articles/decisionpoint/2017/10/dp-alert-is-the-rally-exhausted.html
• DiscoverGold
****************************************
*** For Market Direction and Trends visit our board:
https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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