Death cross on the S&P500, it may not be all doom after all
- 9 months ago
The dreaded death cross is forming in the S&P 500 as it is on the brink of heading below the 200 day moving average of 2,762.08.
It is currently standing at 2,763.56.
A death cross is what analysts describe as the indicator at which the 50 day crosses below the 200 day which usually gives a forecast of which trend it is to come on the long term.
Taking in consideration the recent 2% decline alongside the DJIA’s dropping to -2.49% and the NASDAQ composite -1.66% it seems inevitable that a trend line below the 200 day average is the likely outcome and could be as soon as Friday.
Should that be the case it’s not all doom and gloom, this could be a great opportunity for investors on the long term but nevertheless it does point out that not all is as well as it seems in the bull market.
Source: Smart Trend Team