Traders seem to be getting a bit more enthusiastic as we approach the end of the year. While I am not looking for much of a rally in the traditional sense (we are really just reversing last week’s loses), it is still nice to see.
Yesterday I spoke about the 50/200 Golden Cross, which is where the 50 day and 200 day moving averages (DMA) cross over: US Equity Markets: Half Empty, Or Half Full?
I failed to mention that the S&P 500 has already had a 50/100 day cross:
The 50/100 day cross is a short term buy signal, with numerous false signals, but it is still a buy signal regardless. Shorter term traders will take advantage of the signal and most likely buy into the market up to the 200 day moving average, the major point of resistance in the US stock market since late summer:
(photo courtesy of Wong Mei Teng)