Originally Posted by
Baa_Baa
Long moving averages are not encouraging, as the 200MA has crossed down through the 400MA, the 'double death cross'. Last time this happened was Aug 2011 heralding a one year down/sideways move before the Aug'12 spike up and the 200/400MA cross back up in Dec'12.
The 400MA can also be informative when the SP crosses through it either way, like it did crossing up around $1.00 and recently down at $2.70 whereas it has supported the SP twice in the past 3-4 years. Unlike the 200MA which has been breached down 5 times.
This is only relevant if you care about capital management.