DP Bulletin: OEX First to Log Short-Term SELL Signal


The whipsaw Short-Term Trend Model BUY signal generating on the OEX Friday below its 50-EMA was the culprit for today's ST Trend Model SELL signal. Remember that ST Trend Model signals are generated by 5/20-EMA crossovers in relation to the 50-EMA. A positive crossover is always a BUY signal. However, if a negative 5/20-EMA crossover occurs, there are two signals that can be generated, Neutral and SELL. If the negative crossover occurs below the 50-EMA, it is a SELL signal; otherwise, it is a Neutral signal.

Today deep decline brought price to the original October low where so far it is holding. The PMO has now topped and could come in with a SELL signal later this week. Don't let the Scoreboards above fool you into complacency with the green BUY signals in the short term. I recommend you go to "Erin's LIVE ChartList" and flip through the other daily charts. (The link to my LIVE ChartList is at the top of the DecisionPoint Blog page as well). The other three indexes will be joining the OEX soon with short-term SELL signals too.

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)


SCTR Ranking

**Don't miss DecisionPoint Commentary! Add your email below to be notified of new updates"**


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
Subscribe to DecisionPoint to be notified whenever a new post is added to this blog!
comments powered by Disqus