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Thursday, July 19, 2018 8:41:19 AM
DP Alert: Short-Term Indicators Back to Neutral - PMO SELL Signal for Bonds
By: Erin Swenlin | July 18, 2018
The quick drop of short-term indicators is a case in point on how "oscillators must oscillate" and that overbought conditions in a strong bull market can unwind through consolidation and are therefore, not necessarily a precursor to doom and gloom. I've been writing about these indicators frequently over the past week and half and in each instance I have reiterated these concepts. At this time, we are waiting on positive crossovers of weekly PMOs to make way for Scoreboards that are all "green" or on BUY signals.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of 10 major sectors. This is a snapshot of the Intermediate-Term and Long-Term Trend Model signal status for those sectors.
STOCKS
IT Trend Model: BUY as of 5/11/2018
LT Trend Model: BUY as of 4/1/2016
SPY Daily Chart: Price is ready to test all-time highs. The PMO is rising nicely, along with all other indicators which suggests to me those highs will most certainly be tested soon.
Short-Term Market Indicators: It took only a few days of consolidation to clear overbought conditions on the Swenlin Trading Oscillators (STOs). In fact, price was in a rising trend while these conditions were cleared. This tells me there is internal strength here. With indicators in mostly neutral territory, they are more than ready to accommodate some upside price action.
Intermediate-Term Market Indicators: These continue to look healthy and have yet to become overbought. This bodes well for the intermediate term.
Conclusion: Overbought indicators have cleared and moved neutral. Both intermediate-term and short-term indicators have room to support more upside price action and a likely move to test all-time highs. The SPY is showing increasing positive momentum that is accompanied by good volume. Easy to be bullish right now.
>>> Read More…
• DiscoverGold
By: Erin Swenlin | July 18, 2018
The quick drop of short-term indicators is a case in point on how "oscillators must oscillate" and that overbought conditions in a strong bull market can unwind through consolidation and are therefore, not necessarily a precursor to doom and gloom. I've been writing about these indicators frequently over the past week and half and in each instance I have reiterated these concepts. At this time, we are waiting on positive crossovers of weekly PMOs to make way for Scoreboards that are all "green" or on BUY signals.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of 10 major sectors. This is a snapshot of the Intermediate-Term and Long-Term Trend Model signal status for those sectors.
STOCKS
IT Trend Model: BUY as of 5/11/2018
LT Trend Model: BUY as of 4/1/2016
SPY Daily Chart: Price is ready to test all-time highs. The PMO is rising nicely, along with all other indicators which suggests to me those highs will most certainly be tested soon.
Short-Term Market Indicators: It took only a few days of consolidation to clear overbought conditions on the Swenlin Trading Oscillators (STOs). In fact, price was in a rising trend while these conditions were cleared. This tells me there is internal strength here. With indicators in mostly neutral territory, they are more than ready to accommodate some upside price action.
Intermediate-Term Market Indicators: These continue to look healthy and have yet to become overbought. This bodes well for the intermediate term.
Conclusion: Overbought indicators have cleared and moved neutral. Both intermediate-term and short-term indicators have room to support more upside price action and a likely move to test all-time highs. The SPY is showing increasing positive momentum that is accompanied by good volume. Easy to be bullish right now.
>>> Read More…
• DiscoverGold
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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