Back in July, the Death Cross was all the rage. Last week, the market quietly stepped through the Golden Cross and hardly anybody noticed.
The Death Cross is when the 50-day moving average for the Dow Jones Industrial Average slips below the 200-day moving average.This happened most recently last summer when the economic news was gloomyand the market was full of bears.
On Oct. 1, the mirror image happened: the 50-day moving average crossed above the 200-day moving average, an occurrence technical strategists call the Golden Cross, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.
"We follow sentiment very closely, and it seems like the bad news is magnified and the good news is shrugged off, or maybe not acknowledged as much as it should be," Detrick said.
Simply put, the Golden Cross shows that the shorter-term price movement in the market is more positive than the longer-term trend. When it occurs, it's typically a sign the market will continue to go up.
"It can be a very bullish development," Detrick said.
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