NEW YORK: The Dow Jones Industrial Average triggered a technical signal on Tuesday that many investors believe could portend more gains for stocks in the short term, known as the golden cross.
Even with the Dow's slightly lower close on Tuesday on trade concerns, the 50-day managed to end the session above the 200-day moving average. "All signs are pointing towards continued good performance, and the golden cross just accentuates that because that is another positive story," said Ken Polcari, managing principal at Butcher Joseph Asset Management in New York.Polcari said the cross should not be looked at in a vacuum, however, and pointed to gains in the S&P 500 and Nasdaq that have lifted those indexes above their highs from early March as further evidence the market is strengthening.On Dec.
The results were different for the S&P 500, however, with the"golden cross" strategy yielding returns similar to the index while also enabling investors to avoid major sell-offs and bouts of volatility.