In this week's "Technically Speaking," the "Golden Cross" arrives, but are the bulls safe? As noted two weeks ago, the 50/200 dma crossover is historically bullish for equities. However, with markets facing one of the worst earnings declines on record, could overly exuberant investors be walking into a trap?
Let's start with what we wrote previously:
"As shown below, the market broke out of that consolidation and triggered "buy signals" across multiple measures. This breakout will give the "bulls" an advantage in the short term with a retest of the June highs becoming highly probable."