DecisionPoint

Technology Hit Hard, Results in PMO SELL Signal on Nasdaq 100

As you can see below, the NDX's steep decline has thrown the Price Momentum Oscillator (PMO) below its signal line. I don't expect to see similar readings from the other indexes as they haven't been hit as hard as techs on the latest declines. It also took the NDX some time to generate the original PMO BUY signal. You'll see on the daily charts for the other three indexes that PMO SELL signals are not likely unless we see a deeper decline.

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Equal-Weight ETFs Log New ITTM BUY Signals

DecisionPoint tracks not only the sector SPDRS, but we also follow the equal-weight versions. For more information about the benefits of trading equal-weight ETFs, you can read this article written by Carl. Today is a teachable moment with these three IT Trend Model BUY signals arriving on the same day. The lesson? Not all BUY signals are good BUY signals, some may be "good-bye" signals.

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DP Alert: Short-Term Overbought Conditions Suggest Upcoming Pause/Pullback

It may seem strange that all of the Scoreboards are green except in the area of intermediate-term PMO signals. A look at the weekly charts for all four indexes reveals all but the NDX weekly PMO are rising up toward IT PMO BUY signals. The margin is still rather large so I wouldn't expect to see these signals update until next Friday at the earliest. To see the weekly charts (including daily and monthly charts) of the four Scoreboard indexes, go to the DecisionPoint ChartList. The link is located at the top of the main DecisionPoint blog page.

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On Fire! Energy, Small- and Mid-Caps, Financials All Trigger ITTM BUY Signals

The last two days have issued SIX new Intermediate-Term Trend Model (ITTM) BUY signals. It shouldn't be a surprise that the Energy SPDR (XLE) and Natural Gas (UNG) triggered given the buzz around that sector last week on MarketWatchers LIVE and headlines on our StockCharts.com Blogs page. Arthur Hill and I noted the push that small and mid-caps were making mid-week and today, the Financial sector was on fire. Take a look at these very bullish charts!

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DP Weekly Wrap: Climax and Options Expiration Slow Advance

For a few weeks I have been expecting an upside breakout, and on Monday the breakout finally happened. The internal action on that day indicated that a buying climax had taken place, an event that very often leads to some post-climax churning or pullback. Also, this was an options expiration week, a process that tends to keep prices fairly quiet.

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DP Alert: Market Takes a Pause

A day passed with no signal changes for the DP Scoreboards, but also for the SPDRs and their equal-weight counterparts that DecisionPoint follows. The market is taking a short pause. I suspect with options expiration tomorrow, we will see more flat trading though with higher volume.

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DP Bulletin: PMO BUY Signal Finally Triggers on $INDU - New PMO Signals TLT, UUP - ITTM BUY Signals IWM, XLP

Lots of new signals today! Three important PMO signals arrived on the Dow, Bonds (TLT) and Dollar (UUP); not to mention two important Intermediate-Term Trend Model BUY signals on Russell 2000 ETF (IWM) and Consumer Staples SPDR (XLP). Feast your eyes on these charts!

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DP Alert: IT Trend Model BUY Signal for equal-weight Industrials ETF (RGI) - Gold & Bonds Pullback

No changes to the DP Scoreboards. We're just waiting on the Dow to log a PMO BUY signal. Reviewing the chart of the Dow we can see that a PMO BUY signal should trigger on the next positive close, if not sooner. Today's breakout to new all-time highs was impressive. I like that it appeared off the positive divergence between the OBV and price.

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DP Weekly Wrap: Dollar Weak, Gold Strong

Last week there was a high-volume breakout above a declining tops line. This week price pulled back to the line, bounced somewhat higher, then moved sideways the rest of the week. S&P 500 total volume was fairly robust compared to the weaker SPY trading volume, so there was more going on than we might have expected during a short week. The daily PMO lost its starch and went flat. Most interesting, a new price pattern, a triangle, has emerged. Since the top of the triangle is not as steep as the bottom line, I believe the bias is bullish.

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