Yesterday, the SPX (SPY), OEX (OEF) and Dow Industrials (DIA) all saw new PMO Crossover BUY Signals. Today, they were joined by the remainder of the major indexes. The market is clicking; now we need to determine how long this rally will stick around.
Seeing so many oversold PMO BUY Signals is especially bullish. They are all oversold signals as well. Our only caution would be that we did see similar signals early last month and they didn't produce a lengthy rally. The signals came in just in time for the decline.
Try us out for two weeks with a trial subscription!
Use coupon code: DPTRIAL2 at checkout!
Finally, we also note that the Silver Cross Indexes on all of these indexes show a BULLISH BIAS in the intermediate term. The Silver Cross Index measure the percentage of stocks within the index holding a "Silver Cross" or 20-EMA above the 50-EMA. When the Silver Cross Index moves above its signal line (10-day EMA), it is called a Bullish Shift. Once the crossover occurs, the bias changes to BULLISH in the intermediate term.
Conclusion: The markets are set up for a lasting rally. We have oversold PMO Crossover BUY Signals and a Bullish Bias in the intermediate term. It has run hot, so a digestion phase does seem imminent. That should offer some good entries.
Learn more about DecisionPoint.com:
Watch the latest episode of DecisionPoint on StockCharts TV's YouTube channel here!
Try us out for two weeks with a trial subscription!
Use coupon code: DPTRIAL2 at checkout!
Technical Analysis is a windsock, not a crystal ball. --Carl Swenlin
(c) Copyright 2023 DecisionPoint.com
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.
Helpful DecisionPoint Links:
DecisionPoint Alert Chart List
DecisionPoint Golden Cross/Silver Cross Index Chart List
DecisionPoint Sector Chart List
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
