Today both the S&P 100 ($OEX) and Nasdaq 100 ($NDX) Indexes switched from Short-Term Trend Model BUY signals to NEUTRAL, when their 5EMAs crossed back down through their 20EMAs. With only two days since the last signal changes, this is more annoying whipsaw, but I think these signals will hold for a while. I'll be making a full assessment in tomorrow's DP Weekly Wrap.
Today's decline was a retest of last week's low, a retest that obviously failed.
Of the four major averages we track here, the Nasdaq 100 was the only one that did not break through last week's low.
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.