After a rocky 2012, the Shanghai Composite (China’s main stock market index) has been making a big move up.
In fact, it’s moving up so quickly that the 50-day moving average is about to be higher than the 200-day moving average, a phenomenon referred to by technical analysts as the “golden cross.”
This is a bullish sign for traders who believe in momentum in the markets.
The folks at Bespoke Investment Group wrote about this earlier today. Here’s their chart:
Photo: Bespoke Investment Group