DP Bulletin #2: Here and Gone...NDX Switches Back to PMO BUY Signal


You know you're in trouble when you wake up and find a snarky tweet about the timeliness of a particular signal change. That was the case this morning when I got the tweet about the NDX PMO SELL signal that arrived after the market closed yesterday. Today, the PMO whipsawed and easily discarded the PMO SELL signal. I did mention that the margin was exceedingly thin and whipsaw could be a factor...and still could be, for that matter. 

Today's breakout to new highs certainly confirms the PMO BUY signal which was triggered when the PMO crossed above its signal line. Volume isn't necessarily confirming as it dwindles, but it's a holiday week so I wouldn't read into volume. Until we get some serious margin between the PMO and its signal line, the BUY signal is shaky.

Note that the other three DP Scoreboard indexes have only managed a tick up by their PMOs. There is territory for their PMOs to scale before we even see a PMO BUY signal. With new all-time highs being logged on the SPX and Dow, I would expect to see those PMO BUY signals next month if not sooner. Santa Claus is coming to town and he usually brings a rally for investors.

Helpful DecisionPoint Links:

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)


SCTR Ranking


Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin

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Erin Swenlin
About the author: is a co-founder of the website along with her father, Carl Swenlin. She launched the DecisionPoint daily blog in 2009 alongside Carl and now serves as a consulting technical analyst and blog contributor at Erin is an active Member of the CMT Association. She holds a Master's degree in Information Resource Management from the Air Force Institute of Technology as well as a Bachelor's degree in Mathematics from the University of Southern California. Learn More
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