What statistical data have you got on "death crosses" and subsequent price action? Over what time frames have you tested the subsequent price action in these crossover occurrences to define an up or down movement? How many times did the price action confirm the "death cross signal"? I doubt that this "signal" has any significant statistical grounding as a predictor of price movements.


>Here's a quick follow up to a previous post. You can use these links to follow along.
>
>DOW
>http://finance.yahoo.com/echarts?s=%5EDJI+Interactive#chart3:symbol=^dji;range=6m;indicator=sma(50,100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
>
>NASDAQ
>http://finance.yahoo.com/echarts?s=%5EIXIC#chart2:symbol=^ixic;range=6m;indicator=sma(50,100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
>
>S&P
>http://finance.yahoo.com/echarts?s=%5EGSPC+Interactive#chart2:symbol=^gspc;range=6m;indicator=sma(50,100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
>
>RUSSELL
>http://finance.yahoo.com/echarts?s=%5ERUT+Interactive#chart1:symbol=^rut;range=6m;indicator=sma(50,100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
>
>
>All 3 major US indicies had double death crosses where the 50 day moving average had crossed below both the 100 and 200 day averages and the Russell 2000 had 1 where the 50 went below the 100 (it's about to cross below the 200). However, since then we've rallied during earnings season and all 4 indicies have crossed above their 50 & 200 day averages. This is bullish action suggesting that buyers are up-paying for securities.
>
>All 4 indicies are approaching their 100 day moving averages and their 61.8 fib retracements off the recent lows.
>
>Today's close in parens
>
>DOW (10537) 100sma=10526 61.8fib=10588
>NASDAQ (2288) 100sma= 2324 61.8fib= 2353
>S&P (1113) 100sma= 1128 61.8fib= 1140
>RUSSELL (662) 100sma= 669 61.8fib= 685
>
>Note : The DOW is above it's 100sma and is above it's mid June high which, if confirmed, will break the lower-high trend we've been seeing since April.
>
>If the rally continues and we confirm break outs above the 100 day SMAs and above the 61.8 fib retracements we could be heading for a retest of the late April highs.
>
>If the rally fails to breakout, we're likely to retest the early July lows.