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* * * DecisionPoint Alert: SPX Back on PMO SELL * * *

By: Erin Heim | November 7, 2017

Yes, the PMO BUY signal on the SPX has already disappeared. Unfortunately with the margin so thin between the PMO and its signal line (thousandths of a point), this likely will change again tomorrow if the SPX can close higher. What is interesting...the SPY never managed a PMO BUY Signal and it has now topped below its signal line.





SIGNALS: Here we include charts of any important signal changes triggered today by our Intermediate-Term Trend Model.

NO NEW SIGNALS TO REPORT.

STOCKS

IT Trend Model: BUY as of 11/15/2016

LT Trend Model: BUY as of 4/1/2016

It was an interesting trading day. The market shot up on the open and then fell apart, finally finding support at Wednesday's top. A new all-time high was set intraday, but not a closing all-time high.



Is the market going to pause? Looking at the PMO on the SPY, I would say, "yes". I don't think it will be a long pause and I doubt we'll see a big pullback. The price trend is still strong and healthy and the OBV doesn't show signs of distribution, only accumulation. The saturation point has not arrived.



Climactic Indicators: I was hoping we'd see some climactic readings today, but the rally in the morning pretty much negated any climactic readings. I do think it is worth noting that the VIX has spent the last week hovering between 10 and 11. The complacency is stunning. But how can one argue against it when the market is making it so easy to be complacent with the hurricane force bull winds blowing.



Short-Term Indicators: These indicators have been rising and we can see that since they bottomed, the market has done fairly well. I'd like to see them rise above previous tops in October, but given the rise, it's hard to be bearish in the short term. I have noted that typically when we see the IT indicators bottom at the same time as ST indicators, the rally following tends to be more healthy.



Intermediate-Term Indicators: It is fascinating to see these indicators unwinding with very little decline necessary. They are already trying to bottom. However, until they do (and give us a positive crossover), the IT picture is still on the neutral side.



Conclusion: Seeing the PMO topping below the signal line on the SPY and the destruction of yesterday's PMO BUY signal on the SPX does have me uneasy; however, volume patterns are healthy and ST indicators are rising. IT indicators don't look terrible, but they are still declining which leaves me in the neutral position as far as the general market. . .

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