Market in Death Cross Mode: Stay on the Sidelines

[redrumloa]

Market in Death Cross Mode: Stay on the Sidelines

The Death Cross & Other Momentum "Tells": A Death Cross occurs when the 50-day moving average (MA) falls beneath the longer term, 200-day MA. This technical indicator is getting a lot of buzz of late, both because it has a very cool name and it's been a relatively reliable indicator of a failing market. The fact of the averages crossing is a function of market momentum failing. Obviously. The Death Cross occurs relatively seldom and can change quickly, Louise notes. A false cross occurred in 2010 but reversed within weeks. On the other hand, the cross in early 2008 was an outstanding exit cue. These are the two most recent Death Cross triggers.