When the 20EMA crosses up through the 50EMA, we consider it to be an intermediate-term BUY signal (aka Silver Cross, as opposed to the Golden Cross, to be discussed later). A few years ago we developed the Silver Cross Index (SCI), which shows the percentage of stocks in a given index that have a Silver Cross status. It gives us a clear picture of the number of stocks that are participating in an advance, or decline. The chart below shows the SCI for the three indexes that compose the S&P 1500 Index. it is not hard to see the severe negative divergences that exist on all three.
