July 21, 2021

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

50-Day Moving Average

Please click here for a chart of  S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• Technically oriented investors are hanging their hats on the 50-day moving average and buying stocks.
• The chart shows the 50-day moving average.
• The chart shows five incidents of bounces from the 50-day moving average since March of this year.
• There is nothing inherently magical about the 50-day moving average.  Why not a 40-day or a 60-day moving average?