Let's get that title question answered right now...No, I don't think the correction is over. Yes, today we got both a ST Price Momentum Oscillator (PMO) BUY signal and an ST Trend Model BUY signal. The chart still has problems.
We had Tushar Chande on MarketWatchers LIVE today (go watch the recording!) and he made a case for a retest of the February low or the set-up of a double-bottom. He noted that many of his fellow bloggers, like Tom and I, have pointed out evidence to bolster that position. It was a bit easier to take that position when the SPX, Dow and OEX Scoreboards were only half green, but right now after two new buy signals, the position may need a bit more bolstering.
First, the 5-EMA crossed above the 20-EMA which triggered the ST Trend Model BUY signal, but look at the whipsaw and braiding of the 5/20/50-EMAs. This buy signal is far from impressive. The PMO does show rising bottoms, but it and the OBV are mostly sideways and twitchy. Here's the big problem for me, a new rising wedge. A breakdown and test at 2600 makes the most sense to me. The buy signals are wishy washy at best. As I wrote in yesterday's blog, when I get mixed messages, I recommend caution. I moved more into equities this week, but this chart pattern has me tightening stops.
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