Dow Jones Indexes (DJI) is reducing the equity allocation of its Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index equity allocation to 25 percent from 100 percent over the next five days. The index will move 75 percent of the allocation into short-term U.S. T-bills.
The index signals a downward market condition and occurs when a market’s 50-day moving average crosses below its 200-day moving average, a condition known as “Dead Cross”. The index, which applies the moving average crossover system to U.S. large-cap equity securities, dynamically reallocates component weights between an underlying equity index and a cash index as and when “Golden Cross” and “Dead Cross” signals surface.
Click here for the release from Dow Jones Indexes.