Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
I have created a chart showing the weekly S&P 500, with MACD as the sole secondary indicator. The vertical blue lines indicate when we have either a bullish or bearish crossover. The red shade periods are when it is in a bearish condition and green a bullish. This goes back 3 years or so – taking aside the long period in 2011 when Europe dominated, usually the bearish crossover leads to a front end loaded correction. We are now entering one of those periods. Sample size is of course small and from memory most of those other periods were NON QE which has put the market into an altered state. But worth noting.
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