Over the years I’ve harped on about this. The media tout “DEATH CROSS” in fearsome headlines and then voila, a hard bounce happens to punish anyone who knee-jerked in response to said media alarm. Here’s the Dow doing just that this month after December’s alarm.
However… a cross of a shorter-term moving average below a longer-term average does mean something and it ain’t bullish. Only the short-term reaction is.
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