Nasdaq 100 Intermediate-Term Weakness


While the other major indexes in the DP Chart Gallery (SPX, OEX and DJIA) continue to show positive momentum with rising Price Momentum Oscillator (PMO) readings, I noticed the Nasdaq 100 intermediate-term indicators including the PMO reveal weakness.

In the chart below note that the PMO has topped and both the ITBM and ITVM had negative crossovers today. All of these factors are indicative of a loss of momentum and internal weakness.

Screen Shot 2014-03-10 at 3.50.23 PM

If you look at the same chart for the other three indexes in the DP Chart Gallery, you will see marked differences. In the case of the OEX, the PMO, ITBM and ITVM are all still rising.

Screen Shot 2014-03-10 at 3.52.06 PM

In the case of the SPX and DJIA, the PMO continues to rise strongly, but the ITBM and ITVM have topped. Topping in the ITVM and ITBM is not good, but they have some distance to cover before a negative crossover their EMAs will occur.

Screen Shot 2014-03-10 at 3.51.45 PM

Screen Shot 2014-03-10 at 3.52.24 PM

We will sometimes see one index lead the way, not only in a positive direction but also in negative direction. In this case, the NDX intermediate-term indicators could be sending up a flare that markets in general are weakening and prepping for a possible pullback. 

Happy Charting,



Erin Swenlin
About the author: is a co-founder of the website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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