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DP Bulletin: S&P 500 ($SPX) Generates ST PMO SELL Signal

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Today on the daily chart the $SPX PMO dropped below its signal line and generated a short-term PMO SELL signal. More notable, price opened and traded higher, but then it reversed and closed lower -- a key reversal day.


The line chart shows the modestly overbought PMO topping, then falling through its 10EMA.

The key reversal is obvious on the daily bar chart below. Note that volume for both SPY and $SPX was well below the one-year average, so today was not a blowoff day. That is not necessarily a positive thing, considering (in my opinion) the distribution that has been taking place for the last few weeks.

Happy Charting!
- Carl


Technical Analysis is a windsock, not a crystal ball.

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Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

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Carl Swenlin
About the author: is a veteran technical analyst who has been actively engaged in market analysis since 1981. He was the founder of Decisionpoint, one of the web's premier market timing and technical signal services, which was acquired by StockCharts.com in 2013. Carl has contributed his market commentary and expert analysis to StockCharts since then. He is a Member of the CMT Association. Learn More
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