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The Spector of Death Cross Arrives in Markets

By
Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

What is a death cross in financial markets you might ask.  It is a bearish sign which is created when the 50 day moving average crosses below the 200 day moving average.  Traditionally the 50 day moving average is used to track short term trends while the 200 day average is used to measure the longer term strength of a market.  Logically when the shorter term average falls below the longer, this are not looking good for the near future.  Both the Dow and NASDAQ have experience this phenomenon in recent days.  This not necessarily saying stocks would plummet.  It sure did turn out that way the death crosses arrived in 2008.  Keep a stiff upper lip!!

Comments (1)

Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Jeff

Thanks the information . . . .I'll be following your post for updates on the market.

Good luck and success.

Lou Ludwig

Aug 11, 2015 02:25 PM