By The Numbers
- 4 Enemies of Bull Markets
- Experiencing Technical Difficulty?
- The Importance of Good Breadth
- Your First Move For Friday November 27th
- How Big Money Rules the Markets
- Web Extra: Private Equity, Conviction Buy?
- Follow the Leader
- Pops & Drops: Abercrombie & Fitch, Nucor...
- Giving Thanks: Seymour
- Your Questions About... Alcoa & The Dollar
MOST SHARED
- No Thanksgiving Rest for Retailers in Sales Race
- US Markets Bracing for Selloff On Worries About Dubai's Debt
- UK's Darling to Downgrade 2009 Growth Forecast
- Attraction of Switzerland to Businesses
- More Asia Executives Resigned to Economy Flights: Survey
- Acer Launches Android Phone, Says Targets on Track
- Oil Falls Toward $74 Amid Dubai Debt Jitters
RSS FEED
Text Size 
Posted by Adam Daniele, CNBC Market Analyst
On Friday, July 24th, the S&P 500’s [.SPX
Loading...
()
] 100-day moving average overtook its 200-day moving average, an event known to Wall Street technicians as a Golden Cross (a shorter-term average crossing a longer-term one, from below to above). A month ago, we saw another major Golden Cross, when the 50-day average moved above the 200-day average.
Historically for the S&P 500, there has been plenty of growth left in the market even after these events occur. The average 3-month gain after its 50-day moving average crosses its 100-day moving average is 2.7% while the average 6-month gain is 4.3%, with the index trading to the upside 61% and 67% of the time over the respective periods. The average 3-month gain after its 50-day moving average crosses its 200-day moving average is 9.3% while the average 6-month gain is 16.5%, with the index up 69% of the time for both periods. The average 3-month gain after the S&P 500’s 100-day moving average crosses its 200-day moving average is 1.8% while the average 6-month gain is 6.7%, with the index positive 64% and 67% of the time over the respective periods.
As of yesterday’s close, 75% of the S&P 500 companies had 50-day moving averages that were above their 200-day moving averages. The spread between the two was an average of 8.9% of the 200-day moving average. Genworth Financial [GNW
Loading...
()
], Ford Motor Co. [F
Loading...
()
], Office Depot [ODP
Loading...
()
], XL Capital [XL
Loading...
()
], Tenet Healthcare [THC
Loading...
()
], AK Steel Holding [AKS
Loading...
()
] and Wyndham Worldwide Corp [WYN
Loading...
()
] are leading the way, with 50-day moving averages that are more than 50% higher than their respective 200-day moving averages. Of course, many of these are trading off such low prices, thereby inflating the differential. A low denominator helps.
 |
On the other hand, Eastman Kodak [EK
Loading...
()
], Citigroup [C
Loading...
()
], Marshall & Ilsley [MI
Loading...
()
] and Regions Financial [RF
Loading...
()
] all have 50-day moving averages that are more than 30% lower than their respective 200-day moving averages.
 |
Additionally, 88% of the S&P 500 companies have 50-day moving averages that are above their 100-day moving averages and 61% have 100-day moving averages that are above their 200-day moving averages.
Comments? Send them to
- What you need to know.
- Social enterprises are becoming a new asset class for the ethically-minded.
- Ever wished your cab driver would stop nattering and just get to where you're going? Well that moment is near(er).
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
Data is a real-time snapshot *Data is delayed at least 15 minutes