Chart of the Day - Tuesday, January 24th, 2023

Today’s Chart of the Day was shared by Larry Tentarelli (@LMT978). Get ready to hear the term 'Golden Cross' all over the financial media pretty soon. As Larry points out, it's just a matter of days before the 50-day moving average (red) crosses above the 200-day moving average (green). The last time the S&P 500 flashed this signal was in July 2020, and it was followed by a 32% gain until the Death Cross in March 2022. The Dow already registered a Golden Cross back in December, and the Russell 2000 will likely do so tomorrow. The Golden Cross is probably the most well-known technical signal out there. So much so, that many technicians argue that it's no longer useful in today's markets. We prefer to use the Golden Cross as trend confirmation, rather than as a trading signal. It's not the best timing tool, but we can all agree that this is not a bearish development.