Sep
09
Equity Bears Beware, Death Cross Can Have the Reverse Effect
ByThe supposedly ominous technical pattern can also signal rallies
The dreaded “death cross” in the Standard & Poor’s 500 Index may well herald better days if history is any guide, Bloomberg strategist Sejul Gokal writes.
The uncommon chart pattern is formed when the 50-dayMOVING average crosses below the 200-day moving average and is considered bearish by most technical analysts. Still, the last two times the signal appeared, in 2010 and 2011, it preceded sizable rallies in U.S. stocks…
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