Quote Originally Posted by nickola.pazderic View Post
But, I know that the SPX peeking above the 20 period SMA on a monthly chart is proven by the primitive backtest method of a 20 year chart to be very bullish.
As Billy posted some weeks back, from Rennie Yang:
"Historically, crosses of the 20-bar average on the monthly S&P chart have proven to be more reliable than crosses of the 200-day average. Out of 24 signals since 1950, note that only one led to a meaningful loss when the signal was closed out, and even that was less than 10%. By comparison, there were fourteen signals that generated a profit of more than 10%."