Moving Above Averages
Tim Knight | Aug 17, 2022 03:33AM ET
Everywhere I look, folks are talking about how the S&P 500 is at its 200-day moving average again. I’m not sure what they’re talking about. To my eyes, it crossed over that a long time ago. I do think it is worthwhile to observe what the 50/100/200 day exponential moving averages are doing with the big indexes, however. I have deliberately hidden the price bars, since they are just noise for our purposes.
You’ll note there have been no bullish crossovers yet. None.
How about the chart below? It definitely had some bullish strength at times, didn’t it? And I’m sure people went long, thinking they were getting stocks on sale. The chart below is 1930-1932, incidentally. So be careful about dropping to your knees and worshipping the power of crossovers. These things tend to move at a glacial pace, and as stated above, nothing bullish has even happened yet.
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