DP Bulletin: S&P 500 ($SPX) Generates ST PMO SELL Signal


Today on the daily chart the $SPX PMO dropped below its signal line and generated a short-term PMO SELL signal. More notable, price opened and traded higher, but then it reversed and closed lower -- a key reversal day.

The line chart shows the modestly overbought PMO topping, then falling through its 10EMA.

The key reversal is obvious on the daily bar chart below. Note that volume for both SPY and $SPX was well below the one-year average, so today was not a blowoff day. That is not necessarily a positive thing, considering (in my opinion) the distribution that has been taking place for the last few weeks.

Happy Charting!
- Carl

Technical Analysis is a windsock, not a crystal ball.

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Carl Swenlin
About the author: 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, 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 in 2013, Carl has served a consulting technical analyst and blog contributor. Learn More
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