DecisionPoint

DP Bulletin #2: SPX and OEX Garner New Short-Term Trend Model BUY Signals

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The SPX and OEX both triggered new ST Trend Model BUY signals as the 5-EMAs crossed above the 20-EMAs. However, the charts are less than impressive. 



We are seeing new strength on the DecisionPoint Scoreboards with four new PMO BUY signals and now 3 out of 4 indexes carrying ST Trend Model BUY signals. Yet, note on both the SPX and OEX below, price has not been able to penetrate the declining tops trendlines. I'd feel a whole lot better if these signals were arriving on a breakout. The OBV isn't making new highs in the short term either. Given the intermediate-term signals on the Scoreboards are bearish, I'm not ready to get on board the rally to all-time highs train. For me, optimistically, we are in a consolidation phase that isn't over yet. These new buy signals could be signaling an end to the correction, but I'm seeing it more as a short-term rally/reprieve until the next test of the 200-EMA or February low. 


Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin


Helpful DecisionPoint Links:

Erin's PMO Scan

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


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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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