What is a Golden Cross? A Golden Cross is a basic technical indicator that occurs in the market when a short-term moving average (50-day) of an asset rises above a long-term moving average (200-day). When traders see a Golden Cross occur, they view this chart pattern as indicative of a strong bull market.Many investors view the Golden Cross as a “holy grail” chart pattern. They consider it one of the most definitive signals of a bull market and, therefore, a strong buy signal. However, there are also analysts who question the validity of the Cross pattern. They do so because of the limited research to detail and prove its legitimacy as a trading mechanism. The most recent evaluation opportunity is in favor of the Golden Cross. Since the pattern last occurred in the S&P 500 Index, the index has gone up by more than 50%

There is a second, converse indicator – the Death Cross – which is the inverse of the Golden Cross. The Death Cross occurs when a security’s 50-day moving average crosses from above to below its 200-day moving average. The Death Cross indicates a bear market going forward.