The S&P 500 prints a golden cross. The 50-day MA at 3954 pierces above the 200-day MA at 3952. All of you long time followers know what typically happens next; a move lower. What? It is a golden cross?
It took almost 4 months for prices to rise to create the 50-day MA at 3954 that pokes above the 200 at 3952, creating the golden cross, so typically, price retraces to take a rest after all that multi-week upside. As time moves along, if the golden cross remains in play, stocks will continue higher.
The US Monthly Jobs Report just dropped and futures are down so there may be lots of sideways chop ahead.
The death cross in March was textbook. When it occurred, you expected price to bounce since it took many weeks for stocks to sink to create the death cross and price needed a rest. The market top was in as 2022 started 13 months ago. The SPX rallies as expected into April 2022 and then the true test occurs for the death cross. As you can see, the death cross remained in play (50 under the 200) so stocks were weak descending lower and lower into the October low.
Watch the golden cross going forward to see if it quickly slips back into a death cross. If not, and the golden cross remains in play, stocks will continue along sideways with an upward bias. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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