Friday, September 14, 2012

50 Month Moving Average Bumping 200 Month Moving Average

Earlier this year I pointed out that the 50 month moving average was approaching the 200 month moving average of the S&P 500.  Fast forward 4 months and the convergence has continued, but the recent rally has served to stave off a crossover for at least the near future.  The death cross, where the 50 day falls below the 200 day is one of the most loathed technical indicators in financial markets.  The monthly crossover (the Mayan-apocalypse cross) has only happened twice, once at the end of the 1970s bear market and once in the midst of the depression.

S&P 50/200 Month Moving Average

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