- December 31, 2020
There are a number of ways to identify the primary trend in the stock market. This method uses the 50-day and 200-day moving average. When the 50 crosses above the 200 (“golden cross”), the trend is up. On the other hand, when the 50 crosses below the 200 (“death cross”), the stock market has moved from uptrend to downtrend. There are whipsaws at times but generally this indicator does a good job identifying the primary trend.