The Dow Jones Industrial Average, for the first time since 2005, is approaching the formation of a “golden cross” chart usually seen as bullish. If history is a guide, investors should ignore the signal, said Bespoke Investment Group LLC.
The 50-day moving average for the Dow was 0.1 percent away from exceeding the average price for the prior 200 days. Technical analysts, who study price charts to predict market moves, calls it a “golden cross” when a 50-day average moves higher than a 200-day average while both are rising, and say that it shows a pickup in momentum that may herald more gains.
