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Worry About Important Things — Not The Death Cross
Posted By Barry Ritholtz On August 16, 2011 @ 11:30 am In Markets,Really, really bad calls,Technical Analysis,Trading | Comments Disabled
In July 2010, Bianco Reserch highlighted an analysis by Ron Griess at TheChartStore.com  of every instance of the death cross (aka dark cross) since 1930. Below are his results.
The first table shows the performance of the S&P Composite for the time periods listed when the 50-day moving average is falling and crosses a rising 200-day moving average. (Dark Cross)
The second table shows the performance of the S&P Composite for the time periods listed when the 50-day moving average is falling and crosses a falling 200-day moving average. (Death Cross)
The bottom line: There are lots of things to worry about, but this is not one of them — its a low probability indicator:
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URL to article: http://www.ritholtz.com/blog/2011/08/worry-about-important-things-not-the-death-cross/
URLs in this post:
 TheChartStore.com: http://www.thechartstore.com
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/08/Dark-table1.png
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/08/Death-table1.png
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