MACD Cross Trend Change Confirmation

March 26th, 2010

MACD Bearish and Bullish Cross signals can be very good confirmation tools. I generally don’t use MACD as the basis for swing trading, but again their ability to confirm a trend change is powerful. Notice below on the SPX daily that the cross near mid-February signaled this recent rally. Now the bearish cross that occurred yesterday could spell trouble for the bulls.

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