It's Official---S&P 500 Closed In Death Cross On Friday

A pattern, called the 'death cross,' appeared on the chart on Friday as stocks plunged. The S&P 500's average price of the last 50 days, dropped below the 200-day moving average, a sign of negative momentum and possible change in trend, according to technical analysts.

"It just means you're lower for longer, meaning there's no real bounce, which is a sign of real selling." said Scott Redler, partner with "Sometimes you break moving averages and you get some kind of quick fast recovery…but when you stay down longer, all of a sudden it's showing real selling. That's why people don't like the death cross. It's almost confirming what could be a change in trend to the downside."


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