The S&P 500 is on the verge of flashing a closely watched 'golden cross' that suggests more upside ahead

• The S&P 500 is on the verge of flashing a closely followed technical buy signal later this week.
• The "golden cross" occurs when the 50-day moving average moves above the 200-day moving average.
• The indicator suggests more upside could be in store for the S&P 500, which is up 15% from its October low.

The stock market is on the verge of flashing a closely followed technical buy signal that suggests more upside ahead for equities.

The S&P 500's rising 50-day moving average was just 26 points below its falling 200-day moving average on Tuesday. With the gap between the two averages falling by about eight points per day, the S&P 500 is on track to flash a golden cross by the end of this week, barring a big sell-off between now and then.