I was just over at our newest blogger’s site, chessNwine, checking out his stellar charting skills. He made a remark about the impending 20 day average cross beneath the 50 day average on the SPX, which reminded me of some recent testing I did on this cross, which is widely considered to be bearish. My testing shows that it is actually not as bearish as one might think, and it might even make a decent buy signal.
Considering that February’s cross marked the low almost to the day, the results in my testing which did not include February’s cross, would be even more bullish.
You can decide for yourself: