DecisionPoint

Dow Finally Breaks Out

Erin Swenlin

Erin Swenlin

Co-Founder, DecisionPoint.com

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If you look at the DP Scoreboards below, you'll note that the Dow is the only Scoreboard with "red" on it. It is highly likely that red arrow or PMO SELL signal will evaporate tomorrow if we see a follow-on rally or even a slight rise. I'll send out a "DP Bulletin" when/if that crossover occurs.



Looking at the chart, you can see that the Dow basically spent the last half of December in a consolidation zone. The rally of yesterday and today set new all-time highs. While I have annotated a bearish rising wedge, I think "bull market rules" apply, meaning it will not likely resolve downward with a correction or deep pullback. In fact, with bullish confirmations between PMO tops and bottoms, as well as a rising OBV, the worst we'll likely see is another pause. The angle of ascent (rising bottoms) since mid-November is very steep. I would expect to see some drift sideways like the end of December to adjust that angle.


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Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking


 

Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin


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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