It's official! All four DecisionPoint Scoreboards are on BUY signals in all three timeframes on the PMO and Trend Models. Tom Bowley and I continue to discuss during the MarketWatchers LIVE show about the hurricane force bull market winds. If these Scoreboards don't convince you, I'm not sure what will. Bull market rules definitely apply right now. What does that mean? Simply put, don't worry so much about overbought conditions and expect bullish conclusions to chart patterns and support/resistance levels. This is NOT to say that we have an unending bull market or are not vulnerable to a price shock. It simply tells you the temperature of the market is extremely bullish, so why buck the trend?
The PMO on most of the major index charts has been fluctuating sideways as price continues to rise uniformly. The PMO measures momentum or acceleration of a price move. If we see a steady rise with no real acceleration or deceleration of price, the PMO will flatten out. The SPX chart shows us the beautiful rising trend channel that price formed and is conforming to still. With price sitting in the middle of this channel, there is room for it to pullback slightly and test the bottom of the channel. With bull market rules in effect, I would expect a pullback or consolidation NOT to break below the rising trend channel.
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Technical Analysis is a windsock, not a crystal ball.
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