DecisionPoint

DP Bulletin: Dollar (UUP) ITTM SELL Signal - ITTM Neutral Signals for XLU and RYU

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The Dollar (UUP) continues to form a bearish head and shoulders pattern in textbook fashion. The decline continues and consequently, there was a negative 20/50-EMA crossover BELOW the 200-EMA which constitutes an Intermediate-Term Trend Model (ITTM) SELL signal. For the Utilities SPDR (XLU) and Utilities Equal-Weight (RYU), new ITTM Neutral signals executed on a 20/50-EMA negative crossover ABOVE the 200-EMA which is why it is a Neutral signal and not a SELL signal.



Nothing bullish on this chart. I expect the Dollar to continue to decline and test September lows.

I warned everyone last week that there was an issue with the Utilities sector. The doom and gloom arrived, although I didn't expect the free fall correction that occurred this week. The PMO SELL signal came in nice and early, as did the ST Trend Model Neutral signal (5/20-EMA negative crossover above the 50-EMA).

The bearish head and shoulders executed with gusto as price dropped like a rock. It appears to have found an area of support. However, today price gapped below the 200-EMA. We haven't seen price below the 200-EMA in well over a year. I don't think utilities are a great place to try to find a bottom or catch that falling knife. The PMO has reached oversold territory, so there's a chance we'll see utilities rally, but a death drop like this doesn't smell like an exhaustion, more likely an initiation to lower prices.


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)

ITBM and ITVM

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 DecisionPoint.com 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 StockCharts.com. 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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