After breaking out from a short-term declining trend channel, the market seems to be losing steam. But, is it? The PMO has just had a positive crossover its 10-EMA triggering a PMO Buy signal.
We may be looking at a fake-out PMO Buy signal like we saw in early April. Before getting too excited by a positive PMO crossover, let's consult some of our indicator charts from the DP Chart Gallery. The ultra-short-term CVI and Participation- UP are falling after topping in overbought territory, not a promising set-up for a rally.
Short-term indicators look even less favorable with the STVO, STO-B and STO-V all topping in overbought territory.
Intermediate-term indicators look somewhat positive having just had positive crossovers like the PMO, but the indecisive movement since the beginning of April, makes their positive crossovers suspect.
In conclusion, I think the PMO Buy signal is shaky right now given there isn't substantial confirmation coming from our other indicators, especially in the short term. If we see a pullback, horizontal support around 1815 seems reasonable.
Happy Charting!
Erin
