Today, $SPY closed below it's 50 day moving average. Since 2009, this has happened 92 times when the MA is upward sloping. Typically, it is higher two weeks later nearly 70% of the time. pic.twitter.com/rarSUELFVI
— Pivot Analytics ?? (@pivotanalytics) March 4, 2021
Today’s Chart of the Day was shared on Twitter by Pivot Analytics (@pivotanalytics). The S&P 500 closed below its 50-day moving average for the first time since late January today. While conventional wisdom would say this is bearish, the data suggests otherwise. Pivot Analytics examined all the prior instances where SPY closed below a rising 50-day moving average. Two weeks later, SPY was higher nearly 70% of the time for a modest average gain of 0.72%.