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Director of Market Data & Content Services
The Nasdaq's [COMP
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] 50-day moving average crossed over its 200-day moving average last week. Expect the same for the Dow [.DJIA
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] and S&P [.SPX
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] in the days ahead.
Traders often look for moving average crossovers as bullish or bearish indicators. A move of a shorter term moving average (e.g., the 50-day)
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For example, look at the historical chart of the Dow below. Soon after the Dow was hitting its highs in 2007, the 50-day average crossed below the 200-day average. At that point, the Dow was still well above 13,000. We all know what happened next. Had an investor gotten out of the market at that point, he or she could have avoided huge losses and would still be ahead today, even with the rally of the past three months.
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Now, the Dow and the S&P's shorter and longer term averages are converging. Based on the current trajectories and assuming no disproportionate rally or selloff in the next few days, we could see the cross over take place for the S&P by late next week and for the Dow a few days later.
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Data is a real-time snapshot *Data is delayed at least 15 minutes