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DJI Cuts EQ Exposure Of Crossover Index

Dow Jones Indexes is reducing the equity allocation of its Dow Jones Golden Crossover U.S.

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.

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