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Thursday, March 07, 2019 9:19:32 AM
SPX Triggers New Short-Term PMO SELL Signal - Wedge Finally Breaks Down
By: Erin Swenlin | March 6, 2019
This will be fairly brief today, as I am in the process of moving to a new home and it's a bit crazy over here. It's important to note the new ST PMO BUY signal, which occurred on a PMO positive crossover on the SPX daily chart. Also, the bearish wedge pattern has finally executed on the SPX. In addition, I would like to point out on the DP Sector Summary below that XLK had a positive 50/200-EMA crossover, which generated a new LT Trend Model BUY signal.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of eleven 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 2/1/2019
LT Trend Model: BUY (SPY) as of 2/26/2019
SPY Daily Chart: The important things to note are not only the new signal, but also the new negative divergence with the OBV and price tops.
Climactic Market Indicators: Readings are fairly climactic on breadth. I believe we are still in the midst of a selling initiation, which should keep prices lower into the end of the week.
Short-Term Market Indicators: The divergence between the STOs doesn't happen very often, but when it does, it is an attention flag. The rally halted after this current divergence. I don't know that we will see a huge correction as with previous divergences, but we should be cautious nonetheless.
Intermediate-Term Market Indicators: Negative crossovers mean a bearish bias in the intermediate term.
Conclusion: The market is ready to clear overbought conditions. The indicators look pretty ugly right now, so I'm expecting more downside. The best case scenario would be a sideways consolidation that clears overbought conditions.
Read Full Story »»»
• DiscoverGold
By: Erin Swenlin | March 6, 2019
This will be fairly brief today, as I am in the process of moving to a new home and it's a bit crazy over here. It's important to note the new ST PMO BUY signal, which occurred on a PMO positive crossover on the SPX daily chart. Also, the bearish wedge pattern has finally executed on the SPX. In addition, I would like to point out on the DP Sector Summary below that XLK had a positive 50/200-EMA crossover, which generated a new LT Trend Model BUY signal.
SECTORS
Each S&P 500 Index component stock is assigned to one, and only one, of eleven 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 2/1/2019
LT Trend Model: BUY (SPY) as of 2/26/2019
SPY Daily Chart: The important things to note are not only the new signal, but also the new negative divergence with the OBV and price tops.
Climactic Market Indicators: Readings are fairly climactic on breadth. I believe we are still in the midst of a selling initiation, which should keep prices lower into the end of the week.
Short-Term Market Indicators: The divergence between the STOs doesn't happen very often, but when it does, it is an attention flag. The rally halted after this current divergence. I don't know that we will see a huge correction as with previous divergences, but we should be cautious nonetheless.
Intermediate-Term Market Indicators: Negative crossovers mean a bearish bias in the intermediate term.
Conclusion: The market is ready to clear overbought conditions. The indicators look pretty ugly right now, so I'm expecting more downside. The best case scenario would be a sideways consolidation that clears overbought conditions.
Read Full Story »»»
• 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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