| Followers | 680 |
| Posts | 141208 |
| Boards Moderated | 36 |
| Alias Born | 03/10/2004 |
Thursday, August 23, 2018 11:53:32 AM
DP (SPY) Alert: Market Indicators Suggest Short-Term Weakness - PMO SELL for Dollar
By: Erin Swenlin | August 22, 2018
We've now entered the longest bull market on record when counted from the 2009 lows to the highs of yesterday. While there are mixed opinions whether it will hold up much longer, our DP Scoreboards and intermediate-term indicators are still far too bullish to put me in the imminent bear market camp. Additionally, look closely at our Sector Signal Table below. Every sector is currently on a BUY signal in the intermediate and long terms. However, when I look at the shorter term, I do see weakness and likely problems for the next week or more.
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: After hitting new all-time highs yesterday, the SPY pulled back slightly today. I noticed a short-term rising trend channel in the middle of the longer-term rising trend channel. After testing the top of the short-term trend channel, price is poised to pull back toward the bottom in the short term. The PMO is rising still and I suspect the SPY and SPX will be switching to PMO BUY signals soon, but I suspect we'll have to workout current overbought conditions first.
Climactic Market Indicators: Breadth is in a negative divergence with price and I believe the pullback today is a result of that disconnect. I don't think it is over just yet.
Short-Term Market Indicators: We now have very overbought short-term indicators and like the negative divergence with breadth above, this points to lower prices over the next week.
Intermediate-Term Market Indicators: These indicators aren't quite so bearish. They are rising again and have popped back above their signal lines. I'm watching to see if those declining tops trendlines will be broken. I'd feel more confident in their bullishness if we see that declining trend broken on both the ITBM and ITVM.
Conclusion: The short term is lined up for a decline or pullback. I'm not looking for a correction at this point given that intermediate-term indicators are still healthy and there is a PMO BUY signal waiting in the wings on the SPY.
>>> Read More…
• DiscoverGold
By: Erin Swenlin | August 22, 2018
We've now entered the longest bull market on record when counted from the 2009 lows to the highs of yesterday. While there are mixed opinions whether it will hold up much longer, our DP Scoreboards and intermediate-term indicators are still far too bullish to put me in the imminent bear market camp. Additionally, look closely at our Sector Signal Table below. Every sector is currently on a BUY signal in the intermediate and long terms. However, when I look at the shorter term, I do see weakness and likely problems for the next week or more.
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: After hitting new all-time highs yesterday, the SPY pulled back slightly today. I noticed a short-term rising trend channel in the middle of the longer-term rising trend channel. After testing the top of the short-term trend channel, price is poised to pull back toward the bottom in the short term. The PMO is rising still and I suspect the SPY and SPX will be switching to PMO BUY signals soon, but I suspect we'll have to workout current overbought conditions first.
Climactic Market Indicators: Breadth is in a negative divergence with price and I believe the pullback today is a result of that disconnect. I don't think it is over just yet.
Short-Term Market Indicators: We now have very overbought short-term indicators and like the negative divergence with breadth above, this points to lower prices over the next week.
Intermediate-Term Market Indicators: These indicators aren't quite so bearish. They are rising again and have popped back above their signal lines. I'm watching to see if those declining tops trendlines will be broken. I'd feel more confident in their bullishness if we see that declining trend broken on both the ITBM and ITVM.
Conclusion: The short term is lined up for a decline or pullback. I'm not looking for a correction at this point given that intermediate-term indicators are still healthy and there is a PMO BUY signal waiting in the wings on the SPY.
>>> 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
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
