Which two of the following are possible explanations for the situation where a 30-day moving average intersects a 300-day moving average assuming that the 30-day average is upward sloping and the 300-day average in downward sloping?
I. the long-term trend of the market is getting ready to turn bullish
II. the long-term trend of the market is getting ready to turn bearish
III. the market will be bullish in the short-run but bearish in the long-run
IV. the market will be bearish in the short-run but bullish in the long-run

Question

Quizplus · Accepted Answer

The upward sloping 30-day moving average suggests short-term bullishness, while the downward sloping 300-day moving average suggests long-term bearishness. This aligns with statements I and III.

Which Two of the Following Are Possible Explanations for the Situation