The S&P 500 has been above its 50-day moving average for 111 trading days, the longest streak since 2006. Some technicians have point to this fact as cause for concern and suggest the market is "due" for a correction. The historical data does not come to the same conculsion.
There have been eight other instances, since 1962, that the S&P 500 has remained above its 50-day moving average for at least 100 trading days. On average the S&P remains above its 50-day for another 37 trading days and gains, on average, another 2.6% in the next six months.
When the index did eventually trade back below the 50-day in only one instance did the market fall more than 3% in the next month.
The most notable bullish example was 1995, when the market remained above its 50-day average for another 157 trading days and gained 13.6% in the next months.
It takes courage and stamina, when mortified by humiliating disaster, to seek in the ruins the elements of future conquest.
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