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The next is an excerpt from this week’s subscriber-only DecisionPoint ALERT Weekly Wrap.
In the present day, the Know-how Sector (XLK) 50-day EMA crossed down by the 200-day EMA, effecting what’s broadly (and dramatically) referred to as a Dying Cross. In our vernacular, we name it a LT Pattern Mannequin SELL Sign. In any language, it’s unhealthy information for this sector that has led the secular bull market. Sadly, there does not appear to be any energy that may pull this sector out of its nose-dive.
The RSI is unfavorable and falling. The PMO is in unfavorable territory and accelerating decrease on a previous crossover SELL sign. Stochastics have turned down in unfavorable territory as effectively.
Participation is anemic. The Silver Cross Index (SCI), which tells us what number of shares have a 20-day EMA higher than the 50-day EMA (they maintain a “Silver Cross”), is barely 31% and getting worse. The SCI has even turned down beneath its sign line. The Golden Cross Index (GCI) is exhibiting just one/third of the sector having a 50-day EMA above the 200-day EMA (on “Golden Cross” BUY indicators). The GCI can be persevering with to fall.
%Shares > 20-day EMA is lower than 3%! It will get a bit higher as we have a look at %Shares > 50-day EMA, however that’s solely at 12%. It is a bit of higher from there, with 21% having worth above the 200-day EMA. The issue is the SCI and GCI will doubtless proceed decrease, given short-term weak spot is growing.
Conclusion: We have now the low readings on the SCI and GCI. We have now continued deterioration of %Shares above their 20-day EMAs, that are lower than %Shares above their 50-day EMAs, that are themselves lower than %Shares above their 200-day EMAs. With all that in thoughts, the image is not doubtless to enhance; it is simply getting worse. We wish to see %Shares indicators transferring increased to decrease in every timeframe, NOT decrease to increased. That means critical weak spot. It is a management sector, which tells us the market will proceed to be led downward till we begin to see enchancment in Know-how shares.
Good Luck & Good Buying and selling!
Carl & Erin Swenlin
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Swenlin Trading Oscillators (STO-B and STO-V)
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Carl Swenlin is a veteran technical analyst who has been actively engaged in market evaluation since 1981. A pioneer within the creation of on-line technical sources, he was president and founding father of DecisionPoint.com, one of many premier market timing and technical evaluation web sites on the net. DecisionPoint makes a speciality of inventory market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and weblog contributor.
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside along with her father, Carl Swenlin. She launched the DecisionPoint each day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an lively Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Drive Institute of Know-how in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
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