Calculate the simple three-day moving average for the S&P 500 and the exponential three-day moving average where two-thirds of the weight is placed on the most recent close. Why would you want to know the moving average for an index? If the close on April 12, 2019, was below the three-day moving average, would it be a buy or sell signal?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
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Problem 4.13C
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Calculate the simple three-day moving average for the S&P 500 and the exponential three-day moving average where two-thirds of the weight is placed on the most recent close. Why would you want to know the moving average for an index? If the close on April 12, 2019, was below the three-day moving average, would it be a buy or sell signal?

Date
Close
4/1/2019 2,867.19
4/2/2019 2,867.24
4/3/2019 2,873.40
4/4/2019 2,879.39
4/5/2019 2,892.74
4/8/2019 2,895.77
4/9/2019 2,878.20
4/10/2019 2,888.21
4/11/2019 2,888.32
4/12/2019 2,907.41
Transcribed Image Text:Date Close 4/1/2019 2,867.19 4/2/2019 2,867.24 4/3/2019 2,873.40 4/4/2019 2,879.39 4/5/2019 2,892.74 4/8/2019 2,895.77 4/9/2019 2,878.20 4/10/2019 2,888.21 4/11/2019 2,888.32 4/12/2019 2,907.41
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