If you look at the DP Scoreboards below, you'll note that the Dow is the only Scoreboard with "red" on it. It is highly likely that red arrow or PMO SELL signal will evaporate tomorrow if we see a follow-on rally or even a slight rise. I'll send out a "DP Bulletin" when/if that crossover occurs.
Looking at the chart, you can see that the Dow basically spent the last half of December in a consolidation zone. The rally of yesterday and today set new all-time highs. While I have annotated a bearish rising wedge, I think "bull market rules" apply, meaning it will not likely resolve downward with a correction or deep pullback. In fact, with bullish confirmations between PMO tops and bottoms, as well as a rising OBV, the worst we'll likely see is another pause. The angle of ascent (rising bottoms) since mid-November is very steep. I would expect to see some drift sideways like the end of December to adjust that angle.
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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