EXTREME RALLY coming: S&P 500 Moving Averages Show ‘Fierce’ Rally

DO NOT STOP BUYING EQUITIES, I repeat do not stop buying, this rally is confirmed and more upside of 15%-20% or more is coming. KEEP BUYING.

This is the greatest bull market in the world.....





“It confirms the shift in market sentiment.”

Each cross foreshadowed returns of at least 16 percent during the following 18 months.




S&P 500 Moving Averages Show ‘Fierce’ Rally: Technical Analysis


By Michael Patterson

Sept. 9 (Bloomberg) -- A rise in the Standard & Poor’s 500 Index’s five-month moving average above its 15-month moving average for the first time since 2003 signals stocks are in the early stages of a bull market, said Alexander Associates LLP.

The S&P 500’s five-month moving average climbed to 974.39 yesterday, higher than the 15-month moving average of 972.56, according to data compiled by Bloomberg.

The five-month moving average rose above the 15-month line three other times in the past two decades: March 1991, October 1994 and July 2003. Each cross foreshadowed returns of at least 16 percent during the following 18 months.

“Every time you see these two cross, it signifies a major event,” said Anthony Hughes, a London-based investment manager at Alexander Associates. “It confirms the shift in market sentiment.”

The S&P 500 has returned 53 percent since March 9, when it closed at a 12-year low, as second-quarter earnings topped analysts’ estimates and a rebound in manufacturing and home sales signaled the economy is recovering from its worst recession since the 1930s. The rally compares with a 121 percent return during the last major bull market, from Oct. 9, 2002, to Oct. 9, 2007.

The S&P 500’s monthly moving average convergence/divergence line is another bullish sign for the market, according to Hughes. The so-called MACD rose above its signal line in July, indicating that the index is poised to climb, Hughes said. Technical analysts study chart patterns to predict prices.

“It starts to build a very strong case for a fierce bull rally,” Hughes said. Money managers “see the stars aligning.”

 

This is a nice rally. Like the energizer bunny, it keeps going and going and going.

 

These averages also give some bad signals and there's no difference using them on a daily or monthly chart as far as seeing how consistently they perform.

Stunning that such a basic strategy gets Bloomberg coverage as if 5 and 15 periods are magic. lol.

If you have never used MA's before it's something to experiment with but don't mortgage the house. There's a zillion variations on this theme.

 

I see a negative divergence in the weekly.

 

will es break 39-40?

im starting to look for a sell if you clowns are long

 

Of course, and that happens in all time frames. Now change the numbers a little and get on TV

 

Looks like the market loves Obama

 

Rally was "confirmed" months ago. Admit it, you missed the boat and are scared to get aboard at these levels. You're angry with yourself for remaining stubborn and bearish, while all your friends are making money hand over fist.