2.3.23 Golden Cross—Not Just Another Flash in the Pan
The sharp rally in U.S. equity markets has created many skeptics, given the size and scope of the advance. As of February 2, the S&P 500 is up 8.9% year to date, marking its best start to a year since 1987. The big question now is if ‘this time is different’—meaning is this another head fake, or have stocks actually reversed course from a dismal 2022. Fortunately, technical analysis can help investors answer this very important question.
As shown below, the S&P 500 developed a downtrend starting in January 2022. The connecting series of lower highs acted as a dynamic resistance area throughout last year.... Read more