Today the S&P 100 Index ($OEX) daily PMO crossed down through its signal line and generated a short-term PMO SELL signal. Of the four major indexes on our score board, three have switched to short-term PMO SELL signals. Additionally, the S&P 500 Index 5EMA crossed down through the 20EMA, generating a Short-Term Trend Model NEUTRAL signal.
Yesterday the same signal was generated on the Nasdaq 100 Index ($NDX), and I complained that the crossover was not 'robust.' I have no similar complaint about today's $OEX PMO crossover. On Monday the PMO topped and today's crossover was quite decisive, as we can see on the chart below.
The S&P 500 5EMA/20EMA downside crossover results in a ST Trend Model NEUTRAL signal (rather than a SELL signal) because the crossover took place while the 20EMA was above the 50EMA.
Technical Analysis is a windsock, not a crystal ball.
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