S&P 500 index continues to receive bullish support after yesterday's close intercepted 50 and 200-day moving average forming so called "Golden cross". This technical pattern tend to be extremely bullish as faster 50-day moving average moves above the slower 200-day (often perceived as long term trend benchmark) indicating that trend has reversed. Last time this pattern appeared in Oct 21th 2010 S&P gained some 14% before next major correction.
|Golden cross in 2010|
However there is a catch. Usually after golden cross has been detected there is test of the new bullish trend with 50-day moving average as strong support. If there is not brake ubder mentioned level we have got sign for trend confirmation. If we follow the same logic as the bullish trend started Sept 2010 it is reasonable to consider that there should be another positive run for the markets in the next few weeks. S&P 500 outlook remain positive with short term target of 1350 and 1400 for the year end.
|S&P500 and the golden cross in 2012|
Follow CapitalHubs real time chart analysis at Tradingview