As we noted yesterday, the S&P 500 recently closed above its 50-day moving average for the first time since late September. This break above resistance is a positive technical formation, and it also coincides with a breakout above the index's recent highs, which is another technical positive.
Prior to yesterday, the index had closed below its 50-day moving average for 72 consecutive trading days. While this seems like an extremely long time, similar streaks have occurred multiple times in the history of the index. Below we highlight a chart of S&P 500 streaks below its 50-day since 1928. The longest streak lasted 97 trading days and ended on November 1, 1946.
Like dogbert said on saturday,"it's called math"or maybe it's the power of 72....LOL
Posted by: dj | December 17, 2008 at 01:04 PM