Baron Capital Enterprise Inc (BCAP)

[vulken17]

What Is the Golden Cross and Why Does It Matter?

There is a lot of chatter lately about a Golden Cross pattern developing in the chart of the S&P 500. Technicians see the Golden Cross as the ultimate bullish signal, and some interpret it as a green signal to buy. In short, a Golden Cross pattern happens when the 50 day moving average (indicative of the short-term trajectory) crosses the 200 day moving average (indicative of the long-term trajectory.) Since 2007, the S&P 500 has shown a Golden Cross pattern 5 times, and stocks rallied 4 out of 5 times.