S&P 500 Moving Averages Show ‘Fierce’ Rally: Technical Analysis

A rise in the Standard & Poor’s 500 Index’s five-month moving average above its 15-month moving average for the first time since 2003 signals stocks are in the early stages of a bull market, said Alexander Associates LLP.

The S&P 500’s five-month moving average climbed to 974.39 yesterday, higher than the 15-month moving average of 972.56, according to data compiled by Bloomberg.

The five-month moving average rose above the 15-month line three other times in the past two decades: March 1991, October 1994 and July 2003. Each cross foreshadowed returns of at least 16 percent during the following 18 months. (more)