Just a quick bulletin to let you know the Dow Industrials lost the Short-Term Trend Model BUY signal, meaning it has now moved to "Neutral."
The 5-EMA crossed below the 20-EMA, which is what triggered the signal change. Had the negative crossover occurred BELOW the 50-EMA, it would have been a SELL signal. However, it occurred above the 50-EMA, so we deem it a "Neutral" signal. Price has now tested the bottom of the bearish rising wedge successfully... so far. Expectation is a breakdown and, measuring the back of the pattern, the downside target would be right around 24250. I don't think we will see that type of correction, but a breakdown is likely given that the PMO is accelerating lower.
Watch the latest episode of DecisionPoint with Carl & Erin Swenlin LIVE on Fridays 4:30p EST or on the StockCharts TV YouTube channel here!
Technical Analysis is a windsock, not a crystal ball.
Happy Charting!
- Erin
erinh@stockcharts.com
Helpful DecisionPoint Links:
DecisionPoint Shared ChartList and DecisionPoint Chart Gallery
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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