The whipsaw Short-Term Trend Model BUY signal generating on the OEX Friday below its 50-EMA was the culprit for today's ST Trend Model SELL signal. Remember that ST Trend Model signals are generated by 5/20-EMA crossovers in relation to the 50-EMA. A positive crossover is always a BUY signal. However, if a negative 5/20-EMA crossover occurs, there are two signals that can be generated, Neutral and SELL. If the negative crossover occurs below the 50-EMA, it is a SELL signal; otherwise, it is a Neutral signal.
Today deep decline brought price to the original October low where so far it is holding. The PMO has now topped and could come in with a SELL signal later this week. Don't let the Scoreboards above fool you into complacency with the green BUY signals in the short term. I recommend you go to "Erin's LIVE ChartList" and flip through the other daily charts. (The link to my LIVE ChartList is at the top of the DecisionPoint Blog page as well). The other three indexes will be joining the OEX soon with short-term SELL signals too.
Technical Analysis is a windsock, not a crystal ball.
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