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Here’s what happens to stocks when the S&P 500 rises above its 200-day moving average - MarketWatch

1. S&P 500 surged over 3% after U.S.-China tariff agreement. 2. The index ended 32 sessions below its 200-day moving average. 3. Crossover above this average typically signals positive future returns. 4. Historical data shows average 12-month gains of 8.6% post-crossover. 5. Longer periods below the 200-day may improve forward returns.

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FAQ

Why Bullish?

The S&P 500's upward movement past a key technical level is often bullish. Historically, such crossovers lead to positive returns, indicating potential upward momentum.

How important is it?

The news on tariffs and the 200-day moving average impacts market psychology and investor sentiment, crucial for S&P 500 dynamics.

Why Long Term?

Crossovers can shape market sentiment and investment strategies, influencing long-term buying behavior.

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