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‘Death cross’ patterns spread like a bearish virus
MarketWatch
Tomi Kilgore
8/28/2015
Excerpt:
The “death cross” pattern is spreading fast through the stock market like a bearish virus.
On Friday, the S&P 500 index SPX became the latest victim. The broad-market barometer’s 50-day moving average fell to 2,074.42, according to FactSet, to cross below the 200-day moving average, which slipped to 2,075.39.
The S&P 500’s last death cross appeared on Aug. 12, 2011, nearly eight months before the S&P 500 bottomed, and over 16 months before the appearance of the opposite bullish crossover, known as a “golden cross.”
Many chart watchers believe a death cross indicates that a shorter-term decline has developed into a longer-term downtrend.
There were 263 stocks within the S&P 500, or about 53%, that had a 50-day moving average (MA) below their 200-day MAs through afternoon trade Friday.
Shares of the biggest S&P 500 company by market capitalization, Apple Inc. AAPL produced a death cross on Aug. 26.
Among other major market indexes, the Dow Jones Industrial Average DJIA produced a death cross on Aug. 11. The blue-chip index was down 47 points in recent trade, and had lost nearly 800 points since the pattern appeared.
On Friday, 18 Dow stocks, or 60%, had death crosses hanging over them.
Many have questioned whether a well-telegraphed moving average crossover is really a bearish signal or not. But at the end of 2008, three months before the market bottomed, all 30 Dow stocks had produced death crosses.
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View the complete article, including images, at:
http://www.marketwatch.com/story/dea...rus-2015-08-28
MarketWatch
Tomi Kilgore
8/28/2015
Excerpt:
The “death cross” pattern is spreading fast through the stock market like a bearish virus.
On Friday, the S&P 500 index SPX became the latest victim. The broad-market barometer’s 50-day moving average fell to 2,074.42, according to FactSet, to cross below the 200-day moving average, which slipped to 2,075.39.
The S&P 500’s last death cross appeared on Aug. 12, 2011, nearly eight months before the S&P 500 bottomed, and over 16 months before the appearance of the opposite bullish crossover, known as a “golden cross.”
Many chart watchers believe a death cross indicates that a shorter-term decline has developed into a longer-term downtrend.
There were 263 stocks within the S&P 500, or about 53%, that had a 50-day moving average (MA) below their 200-day MAs through afternoon trade Friday.
Shares of the biggest S&P 500 company by market capitalization, Apple Inc. AAPL produced a death cross on Aug. 26.
Among other major market indexes, the Dow Jones Industrial Average DJIA produced a death cross on Aug. 11. The blue-chip index was down 47 points in recent trade, and had lost nearly 800 points since the pattern appeared.
On Friday, 18 Dow stocks, or 60%, had death crosses hanging over them.
Many have questioned whether a well-telegraphed moving average crossover is really a bearish signal or not. But at the end of 2008, three months before the market bottomed, all 30 Dow stocks had produced death crosses.
.......................................
View the complete article, including images, at:
http://www.marketwatch.com/story/dea...rus-2015-08-28