Golden cross

It's official, we do have a "golden cross". A golden cross happens when a "fast" moving average climbs above a "slow" moving average but most of the time when people mention the golden cross they refer to SMA50 crossing above SMA200. Personally, I don't put too much emphasis on this crossing maybe because I don't trust SMA crossings too much, I rather prefer EMAs crossings but this crossing is watched by many technical analysts so I thought you should be aware of the fact that it did happened today.

Otherwise, market remains bullish on all time frames. Bulls are getting a little bit shy lately but they are still pushing market up a little bit. SPX touched a new intra-day high in the morning ("new" in the last 6 months) but it did lose 9 points by the end of the day. We still have a bullish EMAs crossing (a "golden cross" if you want ) on 60 minutes chart and price is above the rising 5 days SMA (1168).

On daily chart notice that DMI is still positive and recovered some lost ground last week. The red line was climbing up pretty fast but now it's pointing down again. Weekly DMI is also green and this together with the fact that SMA200 is rising again suggest a bullish picture on long term time frame. On shorter time frames anything can happen but as long as we do have a bullish EMAs crossing on 60 minutes chart I am going to hold onto my longs.

All the best!

babaro