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The S&P 500 and Nasdaq 100 indices have formed a “golden cross” on their charts, indicating the possibility of a “long-term bull market,” according to the experts.
What Happened: According to an iShares MSCI World ETF (NYSE:URTH) chart, tracking the MSCI World Index shared by Barchart, global stocks have formed a “Golden Cross” for the first time since January 2023.
This comes as the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and the Nasdaq 100 index, respectively, also formed “golden crosses” on their charts.
Last time, when URTH formed a golden cross, where the 50-day moving average surpasses the 200-day moving average, the returns rose to 43% over the next two years.
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Historical data dating back to 1975 suggest that the formation of this positive technical indicator on the charts has led the S&P 500 index 88% of the time higher over the next year.
The average return after a “golden cross” was 12.29% in the last 50 years, as per the data shared by Subu Trade.
A portfolio manager at Revere Asset Management, Connor Bates, shared QQQ’s chart and highlighted how the securities have trended upwards after the formation of this cross in the last five years/
Meanwhile, Ed Yardeni of Yardeni Research said in his QuickTakes note that “those ‘golden crosses’ tend to be bullish breakout patterns, indicating the possibility of a long-term bull market.”
