The “Golden Cross” is a technical term (as in stock market technicals) used to describe the 50-day moving average crossing above the 200-day moving average as both moving averages are rising.  That last part about “both moving averages rising” is key because instances where the 50-day crosses above the 200-day when the 200-day is still falling occur quite a bit (the last occurred this past December), and they don’t qualify as a “Golden Cross”.

Right now the Dow Jones Industrial Average’s 50-day and 200-day moving averages are indeed both rising, and within a day or two, its 50-day is going to cross back above its 200-day, marking the first “Golden Cross” for the index since January 3rd, 2012.  If you follow financial media in the coming days, you’ll likely hear about this nifty-named technical formation that is supposed to be bullish, but is it actually bullish?  We analyzed historical “Golden Crosses” for the Dow in today’s Chart of the Day, which you can read by signing up for one of our membership levels below.  Click here for a quick look at what you get with each membership level.

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