Today the Dow Jones Industrial Average ($INDU) 5EMA crossed down through the 20EMA, changing a Short-Term Trend Model (STTM) BUY signal to NEUTRAL.
Recently we have been plagued by deluge of whipsaw signals on the other three major indexes we track here, but the Dow has been quite unambiguous, holding an STTM BUY signal for almost three months. There are no guarantees, but this 5/20EMA crossover is steep and clean, just the kind of configuration I like to see.
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.