Markets Flash Bullish “Golden Cross” – Ready for Record Gains – DOW Already Up 40% Since 2016 Election!
Guest post by Joe Hoft
The stock markets this week reached a pivotal milestone called the “Golden Cross”. The last time this was reached the markets followed up with an increase of 30 percent!
According to MarketWatch on Wednesday, the markets reached the coveted position of the “Golden Cross” this past week –
A bullish “golden cross” pattern has appeared in the Dow Jones Industrial Average’s chart, to suggest a new longer-term uptrend has begun, exactly three months after the opposite “death cross” warned of a downtrend.
A ‘golden cross’ chart pattern occurs when the 50-day moving average (DMA), viewed by many as a shorter-term trend tracker, rises above the 200-DMA, which is seen as a longer-term trend divider. Many technicians believe the crossover marks the spot a shorter-term rally transitions to a longer-term uptrend.
On Tuesday, the Dow’s DJIA, +0.84% 50-DMA rose to 25,177.43 intraday from 25,128.34 on Monday, while the 200-DMA rose to 25,165.67 from 25,158.32, according to FactSet data.
In January of this year the DOW set a record for its best January ever point wise and its best January in 30 years when looking at the percent increase of the DOW.
When Donald Trump won the 2016 election on November 8, 2016 the markets stood at 18,333. Today the DOW closed at 25,963. The DOW is currently up more than 40% since the election.
President Trump’s first year in office (2017) saw the most all-time stock market closing highs (71) as well as the largest increase in DOW history (4,956 points). Prior to 2017, no year in the DOW’s more than 100-year history ever saw the DOW increase by more than 3,500 points, let alone 4,900. The most all-time highs in a year prior to 2017 was 69 in 1995.
Since President Trump was elected President the DOW tied the record for the most all-time closing highs in a row. In January of 1987 President Reagan saw the DOW increase to new all-time highs a record 12 days in a row. In February of 2017, President Trump matched Reagan’s record.
The DOW reached its fastest 500 point increase between major milestones under President Trump. Under President Trump the DOW has seen the fastest 1,000; 2,000; 3,000; 4,000; 5,000; 6,000 and 7,000 point increases in DOW history.
Looks like President Trump’s market records may now be in jeopardy of being surpassed!