Today the Dow Industrials ($INDU) PMO signal changed from a SELL to a BUY.
The just retired SELL signal was only three days old because the daily PMO is currently very flat and close to its signal line. In this configuration the PMO is subject to frequent whipsaw signal changes. As I have frequently said, signal changes are information flags, not action commands. Looking at this chart we can see that price is above all four EMAs, and the PMO is well into positive territory. Could hardly be more bullish.
Technical Analysis is a windsock, not a crystal ball.
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About the author:Carl Swenlin is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of DecisionPoint.com, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and blog contributor.