Many of you may have noticed yesterday's DecisionPoint Alert blog headline, "New PMO SELL Signal for the NDX". I had thought we'd make it to DP Scoreboards with all BUY signals, but the NDX refused to give up the Long-Term Price Momentum Oscillator (PMO) SELL signal on the monthly chart yet again. Below are the DP Scoreboards. You'll find these in the DP Chart Galleries, in the DP LIVE Shared ChartList or at the top of the daily DP Alert blog articles.
Below are the NDX Daily and Monthly charts and then I'll show you the state of the PMO on the remaining DP Scoreboard indexes.
This PMO SELL signal has arrived in overbought territory at the top of the normal range for the NDX's PMO which typically is an oscillation between -2 and +2. The NDX has also broken down from its 2017 rising trend channel. Even On-Balance-Volume (OBV) is beginning to curl around.
As you can see on the monthly chart, there is still a chance that the monthly PMO will generate a crossover BUY signal. Remember, this would change the second red arrow on the DP Scoreboards. The signal will not be official until the last day of the month and much can happen between now and then.
You'll see on the remaining indexes, that the PMO has topped and is heading for negative crossover SELL signals. The OBV has also topped on all three. Note that all three have also had break downs from rising trend channels or in the case of the OEX, a breakdown from a bearish rising wedge.
Conclusion: The NDX appears to be showing the first signs of deterioration among the DP Scoreboard indexes. Looking at the charts for the other three, it is likely the first PMO SELL signal of many.
The NEW DecisionPoint LIVE public ChartList has launched! Click on the link and you'll find webinar charts annotated just before the program. Additional "chart spotlights" will be included at the top of the list. Be sure and bookmark it!
Come check out the DecisionPoint Report with Erin Heim on Wednesdays and Fridays at 7:00p EST, a fast-paced 30-minute review of the current markets mid-week and week-end. The archives and registration links are on the Homepage under “Webinars”.
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
