Five Critical ETFs with "Golden Crosses"

“Death crosses” were a popular topic in the summertime. That’s the bad omen for a given asset when its shorter-term 50-day moving average crosses below its longer-term 200-day moving average.

It happened first to Europe (NYSE: VGK) in May.  It spread to Latin America (NYSE: ILF) and Emerging Asia (NYSE: GMF) by June.

In the months that followed, U.S. stock ETFs had suffered the same fate. The S&P 500 SPDR Trust (NYSE: SPY) “crossed over” in July, while the iShares Russell 2000 (NYSE: IWM) exhibited the same horrific pattern in early August. Many investors convinced themselves that an all-stock bear was at hand.

How quickly the narrative can change.

Those who predicted the demise of stock assets based on “death crosses” must now concede the opposite; specifically, the 50-day trendline has climbed above the the 200-day trendline for a variety of stock ETFs, forming a bullish ”golden cross” pattern.

Here are 5 critical ETFs with “golden” crosses:

Emerging Asia (NYSE: GMF) is not only hitting new 52-week highs here in September, but it experienced a “golden cross” at the start of August. Latin America (NYSE: ILF) may be a tiny bit shy of a new 52-week peak, but it earned its moniker at the start of September.

 

 

While the S&P 500 SPDR Trust (NYSE: SPY) and iShares Russell 2000 (NYSE: IWM) can’t lay claim to the bullish technical cross, both the Dow Industrials Diamonds (NYSE: DIA) and the SPDR Select Industrials (NYSE: XLI) can make the claim.

Granted, some technicians won’t be at ease until they see more “golden crosses” from developed markets and developed regions. For instance, Europe (NYSE: VGK) is still only on the cusp of making a statement. With that said, other analysts may take note of Canada’s golden progress via iShares MSCI Canada (NYSE: EWC).

 

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Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.