Chart technical signals sometimes work differently since the FED is printing money with QE. One example is the death cross (the 50-days moving average is breaking down a declining 200-days moving average downwards.
In the chart of Schaeffer Research you see the number of death crosses that were formed in the S&P500.
When the S&P500 formed a death cross in the past it was a pretty good signal more havoc was coming in the next year.
WSJ's blog Market Beat (and others) think that a death cross is bullish since the invention of QE. The FED cannot stand that many death crosses are formed and does something (QE,Twist). And indeed after 6 month after the last death cross (August 12 2011) the S&P500 is 15% higher, not lower.
source: http://blogs.wsj.com/marketbeat/2012/06/27/heres-how-the-death-cross-is-bullish-for-stocks/
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