More changes to report on the DP Scoreboards, as well as a pending signal. Both the NDX and Dow Industrials garnered IT Trend Model BUY signals when the 20-EMA crossed above the 50-EMA for both. You'll note that the Dow is the only one left out on the IT PMO BUY signal train. However, a peek at the Dow weekly chart confirms that an IT PMO BUY signal is on tap. Currently, the weekly PMO on the Dow has made the positive crossover. However, weekly signals don't go "final" until the close on the final trading day of the week. Unless we see a serious pullback or correction, I suspect that IT PMO BUY signal will be official on Friday.
Be sure and tune into the DecisionPoint show on Fridays at 4:30p EST on StockCharts TV, where Carl and I will tell you all about the latest signal changes and analysis.
A few days ago, I annotated a bull flag on the Dow. Today's move executed the flag. The minimum upside target would be well above all-time highs around 27750. I'm not ready to get THAT bullish, but the chart certainly suggests we will see new highs before long.
I see two areas of overhead resistance that could pose a problem. It's possible that staunch resistance could put an end to this rally before it can really get revved up.
The NDX execution of the bull flag was also impressive with a sizable gap up. All-time high resistance is still some distance away, but 7700 can be linked to previous all-time highs back in August/September.
Conclusion: The ITTM BUY signals were delayed somewhat, but I don't believe they are coming too late. Barring any unexpected news, we should see a move to test overhead resistance at all-time highs.
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
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Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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