The "spread" is the difference betweem the 50-month moving average (MA) of the S&P & the 200-month MA
The spread is now in the process of forming a trough, as one can see on figure 1. The lowest level of the spread will be 8, and this will occur the day after Thanksgiving, on November 23, 2012. From then onwards the level of the spread will increase at least until August next year, irrespective of the movement of the S&P 500.
A trough formation of this spread close to zero is a rare event, having occurred only on five previous occasions before. Moreover, this has historically always provided a positive outlook for the stock market, as can be seen from the table below
http://advisorperspe...ross-Update.php
Buy After Thanksgiving
Started by
stocks
, Nov 13 2012 10:09 AM
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#1
stocks
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Posted 13 November 2012 - 10:09 AM
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Defenders of the status quo are always stronger than reformers seeking change,
UNTIL the status quo self-destructs from its own corruption, and the reformers are free to build on its ashes.
Defenders of the status quo are always stronger than reformers seeking change,
UNTIL the status quo self-destructs from its own corruption, and the reformers are free to build on its ashes.
