Exponential Moving Average - EMA
A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average".
Investopedia explains Exponential Moving Average - EMA
This type of moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.
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http://www.investopedia.com/terms/e/ema.aspIn short, there is a large and unassociated group of investors who use moving averages to determine when it is time to buy or sell stocks, mutual funds, or bonds. They call this type of chart "technical analysis". Those who are skeptical of this methodology call it bunk that is akin to reading the entrails of a sacrificed ox.
The redeeming point here is that there is a substantial amount of investors who are sitting with cash on the sidelines, and are waiting for these moving averages to cross. I think most would agree that sidelined money becomes fuel for economic recovery when injected into the capital markets.
The facts are that nobody holds a crystal ball and can predict market movemnts accurately 100% of the time. However, the market does respond to economic reports, investor sentiment, and maybe even moving averages.
My view is that if enough people believe it to be true, (which I believe is the case) then it may also carry the weight to effect the anticipated change. A self-fulfilling prophecy of sorts.
Time will tell ......
Butt, it looks possible that the "magic cross" could happen soon.