This S&P 500 Death Cross' Could Be The Real Deal

By Lorcan Roche Kelly

Not all "death crosses" are created equal.

In a note to clients, Intermarket Strategy Ltd. Chief Executive and Strategist Ashraf Laidi points out that the S&P 500's 50-week moving average is falling below its 100-week moving average.

This "statistically significant" death cross has only happened twice is the past two decades, Laidi points out. The first took place in 2001 and was followed by a 37 percent decline in the index, while the second pattern occurred in 2008 and preceded a 48 percent drop.

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With investors already growing increasingly nervous about prospects for equities, a death cross of grave proportions could give extra reason for caution.

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Source: This S&P 500 Death Cross Could Be the Real Deal - Bloomberg

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