DecisionPoint

DP Bulletin: New ST Trend Model Neutral Signal on the DOW - First to Fall

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Just a quick bulletin to let you know the Dow Industrials lost the Short-Term Trend Model BUY signal, meaning it has now moved to "Neutral."



The 5-EMA crossed below the 20-EMA, which is what triggered the signal change. Had the negative crossover occurred BELOW the 50-EMA, it would have been a SELL signal. However, it occurred above the 50-EMA, so we deem it a "Neutral" signal. Price has now tested the bottom of the bearish rising wedge successfully... so far. Expectation is a breakdown and, measuring the back of the pattern, the downside target would be right around 24250. I don't think we will see that type of correction, but a breakdown is likely given that the PMO is accelerating lower.


Watch the latest episode of DecisionPoint with Carl & Erin Swenlin LIVE on Fridays 4:30p EST or on the StockCharts TV YouTube channel here!


Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

erinh@stockcharts.com


Helpful DecisionPoint Links:

Erin's PMO Scan

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

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

ITBM and ITVM

SCTR Ranking


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Erin Swenlin
About the author: helped create and manage the DecisionPoint.com website alongside her father, Carl Swenlin. Together, Erin and Carl launched the DecisionPoint daily blog in 2009. She hosts the MarketWatchers LIVE web show at StockCharts.com, and is also a Member of the CMT Association. Learn More
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