The Nasdaq Composite’s COMP, +0.38% chart flashed a “golden cross” pattern on Wednesday, to join the other major market indexes in producing the bullish trend pattern. A golden cross appears when the 50-day moving average crosses above the 200-day moving average, a technical event that many chart watchers believe marks the spot at shorter-term rally transitions to a longer-term uptrend. The Nasdaq’s 50-DMA rose to 7,496.004 from 7,478.580 on Wednesday, while the 200-DMA edged up to 7,491.966 from 7,491.240. The last golden cross appeared on May 19, 2016, and the Nasdaq rose 50% until the opposite bearish “death cross” appeared on Nov. 27, 2018. The Nasdaq’s cross comes two-days after the S&P 500 SPX, +0.30% produced its golden cross and two weeks after the Dow Jones Industrial Average DJIA, +0.20% produced its bullish cross. The NYSE Composite NYA, +0.15% and Dow Jones U.S. Total Stock Market Index DWCF, +0.32% have produced golden crosses this week, while the Russell 2000 RUT, +0.29% and the Dow Jones Transportation Average DJT, +0.35% are still weeks away.
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