Looking at the S&P 500, a new Thrust/Trend buy signal was generated on Monday, changing from a neutral stance. Specifically, the signal was generated by the PMO (Price Momentum Oscillator) and PBI (Percent Buy Index) crossing up through their EMAs. The Thrust Component signal was confirmed later this week when the upside 20/50-EMA crossover occurred.
The Dow generated a buy the previous trading day, and we are now left with only the Nasdaq 100 still on neutral, needing a PBI crossover to occur. As you can see, this will most certainly happen by today's market close. Note that the 20/50-EMA crossover has already taken place.
Bottom Line: Most of the indexes and sectors we track are generating buy signals after having been in neutral for about six weeks of market correction and rebound.
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MECHANICAL MODELS
We rely on our mechanical trend models to determine our market posture. Below is a recent snapshot of our primary trend-following timing model status for the major indexes and sectors we track. Note that we have included the nine Rydex Equal Weight ETF versions of the S&P Spider Sectors. This may seem redundant, but the equal weighted indexes most often do not perform the same as their cap-weighted counterparts, and they provide a way to diversify exposure. Daily tracking of these signals is available to subscribers in the Decision Point Alert Daily Report.