The Dow Jones Industrial Average ETF (DIA) 20-day EMA crossed up through the 50-day EMA (a Silver Cross), generating an IT Trend Model BUY Signal. The Dow saw a better rally today than the SPY, but, under the hood, it isn't quite as strong as the SPY. We do still have participation readings above our bullish 50% threshold, with the exception of the Silver Cross Index. It should be able to get above its signal line soon if participation readings hold up. Remember, the Silver Cross Index tells us how many stocks have a "Silver Cross" within the index. Those stocks have a bullish bias in the intermediate term.
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The weekly PMO is decelerating, but is still holding a Crossover SELL Signal. This looks like a good rally, but expectations should be tempered based on the weekly chart.
The Russell 2000 ETF (IWM) 20-day EMA crossed up through the 50-day EMA (Silver Cross), generating an IT Trend Model BUY Signal. It was not a good Wednesday for small-caps, but, given price is above the 20-/50-day EMAs, we still got the Silver Cross. The PMO has just reached above the zero line, but we don't like the weakness we are seeing already in price as it topped.
IWM has been mostly rangebound, and right now it is at the top of the range, making it vulnerable. The weekly PMO is on a relatively new Crossover SELL Signal. We would be careful with this group.
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