Today on the daily chart the Nasdaq 100 ($NDX) PMO dropped below its signal line and generated a short-term PMO SELL signal.
This is not what I would call a robust crossover. It is more the inevitable result of price running flat to slightly down, which causes the PMO and signal lines to drift sideways, gradually closing the gap and crossing. Examples of 'robust' crossovers would like the ones in June and July. In neither case do we have to squint to guess the direction or relative position of the PMO.
Today we heard endless commentary about the confrontation with North Korea having an effect on the market. Sorry, but I just don't see it yet. We've been expecting a pause/correction, and, in my opinion, that is what we're seeing now. If North Korea is weighing on the market, it is not a very heavy weight. I am not saying that the situation isn't serious, because it is. It's just that the market doesn't seem to think so yet.
Happy Charting!
- Carl
Technical Analysis is a windsock, not a crystal ball.
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Price Momentum Oscillator (PMO)
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