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For today's chart we've chosen to take a look at DJO because it has created two interesting technical sell signals. The first signal of interest is today's move below the parabolic SAR indicator. As you can see from the chart below, this indicator is comprised of a series of dots that are used to generate strategic entry and exit positions (illustrated by the white arrows). A dot placed above the price indicates downward momentum and is used by the bears as confirmation for adding to an existing short position. Conversely, a dot below the price suggests upward momentum and is used by the bulls as a sign for adding to existing long positions. Today's placement of the upper dot is likely to be used by the bears as an indication of a new short-term downtrend.

We've also added the MACD, which has recently crossed below its signal line. This bearish crossover is the second sell signal that will likely be used by technical traders as an indication of a move down toward its 50 DMA.


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