Although the S&P 500 Index rose on Monday, it showed a "death cross" signal—where the 50-day moving average crosses below the 200-day moving average—for the first time since March 2022. Technical Analysts typically view a death cross as a sign that the downward trend will intensify. While the index has historically dropped further after forming a death cross, such pain is often short-lived. Data shows that the overall average of the S&P 500 Index tends to rise three months, six months, and twelve months later, with increases of 2.5%, 4.2%, and 5.8% respectively. Paul Ciana, Chief Technical Strategist at Bank of America Securities, states that the impact of the S&P 500 Index's death cross on the future market is uncertain. A key point is whether the 200-day moving average has declined over the past five trading days at the close. If it has, it may indicate a greater potential decline in the stock market in the near future. According to Ciana, this could be a clear signal that the index may retest last week's low of 2025.
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标普500指数出现“死亡交叉” 3年来首见
The S&P 500 Index has formed a "death cross" for the first time in three years.
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