Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Industrials Sector Gets Golden Cross BUY Signal

by November 23, 2022
November 23, 2022
Industrials Sector Gets Golden Cross BUY Signal

Today the Industrial Sector (XLI) 50EMA crossed up through the 200EMA (Golden Cross), generating an LT Trend Model BUY signal. While this is an encouraging event, we note that most indicators on the chart below are overbought — specifically, the PMO, Silver Cross Index*, and Percent Stocks Above 20/50/200EMAs. In a bull market, overbought conditions do not necessarily imply a rally’s end, but in a bear market it is most likely that we will see a price top soon. That said, we have marked a double bottom, roughly July and October, with the confirmation line drawn across the August top. Price has eased above that line, implying a continued bullish outcome.

I always like to check the weekly chart to get a longer-term perspective, and I must say that this makes me more bullish about the situation. We can see a bearish rounded top terminated by the bullish double bottom, and the declining tops line has been decisively penetrated to the upside. Especially positive, the weekly PMO is rising from a double bottom that has formed a positive divergence. (The second PMO bottom is higher than the first, while the corresponding price bottom is lower.)

Conclusion: The Industrials Sector (XLI) is showing positive signs and negative signs, but this is not particularly unusual in technical analysis. The weekly chart is strongly positive, in my opinion. The daily chart is mixed, the negative signs being overbought internals. If we are transitioning into a new bull market, the overbought condition won’t matter. If the bear market resumes, none of the positive signs will matter. I personally believe that we’re in a bear market rally, so caution is advised.

* The Silver Cross Index is the percentage of index component stocks with the 20EMA above the 50EMA.

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2022 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

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.

0
FacebookTwitterGoogle +Pinterest
previous post
Elon Musk Publishes Poll on Twitter to “Offer General Amnesty to Suspended Accounts” After TGP’s Letter
next post
Iranian Footballers Who Refused to Sing National Anthem Facing Retribution, Tehran Says They Will “Never Allow Anyone to Insult Our Anthem”

You may also like

Risk-On Trades Emerge Amid Big Tech Selloff

February 17, 2024

Bank Earnings Up — Time to Look at...

January 8, 2024

Three ROCs can be Better than One

May 12, 2023

Leadership Rotation Could Confirm Corrective Phase

May 30, 2025

Can Gold and Silver Hold Recent Gains?

August 1, 2022

S&P 500 2023 Q1 Earnings Show Improvement

July 4, 2023

S&P 500 Pushing All-Time Highs? Strong Trends Getting...

July 18, 2023

Markets Continue to Break Support

September 16, 2022

Week Ahead: Short Week May Not See NIFTY...

March 25, 2024

Week Ahead: NIFTY Stays In A Defined Range;...

February 18, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rand Paul says he would support ‘big, beautiful bill’ if debt ceiling hike removed

      June 1, 2025
    • Kevin Hassett ‘very, very confident’ courts will back Trump’s tariffs amid legal setback

      June 1, 2025
    • Senate Republicans eye changes to Trump’s megabill after House win

      June 1, 2025
    • Trump shares post saying Biden was executed, replaced with clones

      June 1, 2025
    • House Dems’ campaign chair says her party’s ‘on offense’ in 2026 battle to win back majority from GOP

      June 1, 2025
    • Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

      June 1, 2025

    Categories

    • Business (8,105)
    • Investing (2,000)
    • Politics (15,458)
    • Stocks (3,119)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved