The S&P 500 index has experienced a "death cross," the first occurrence since March 2022
Golden Finance reports that although the S&P 500 index rose on Monday, it showed a "death cross" signal, with the 50-day moving average crossing below the 200-day moving average for the first time since March 2022. Technical analysts typically view a death cross as a signal that downward momentum will intensify. While this index has usually experienced further declines after previous death crosses, 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 by 2.5%, 4.2%, and 5.8% respectively. Paul Ciana, Chief Technical Strategist at Bank of America Securities, stated that there is no definitive conclusion regarding the impact of the S&P 500's death cross on future market performance. A key factor is whether the closing value of the 200-day moving average has declined over the past five trading days. If so, it may indicate greater downside potential for stocks in the near future. According to Ciana, this could be a clear sign that the index might retest last week's low point of 2025.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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