Today's decline was enough to push the OEX and Dow PMO BUY signals off the DP Scoreboards. The NDX is still looking good with the PMO actually rising right now. However, if the other indexes continue to decline, it is very likely the NDX will follow suit. Gold received a new PMO BUY signal while price easily holds support.
We're seeing breaks below rising trend channels on Dow and OEX. I've annotated areas of possible support. 23000 is a likely stopping point if it cannot hold onto the 20-EMA. Given the close was nearly within the rising trend channel, this doesn't have the scent of a collapse.
Notice that the NDX's PMO is still rising and it is easily holding above the 20-EMA. I would look for it to test 6200 on a continuation of this decline. If the other major indexes struggle, the NDX may be able to hold onto its internal strength and consolidate without a similar decline.
Gold found support at the February top and corresponding bottoms from there. The consolidation appears to be finished now that we see a new ST Trend Model BUY signal (5-EMA crossed over the 20-EMA). Throw in a new PMO BUY signal and it we have a recipe for a rally continuation to test the 1300 level. Based on the lack of extremely bearish sentiment (discounts aren't high enough) I'm satisfied that this support should continue to hold through a decline.
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
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