S&P 500 Nears Death Cross

The S&P 500 is very close to reaching a “Death Cross.” This is when the 50- and 200-DMA cross.

This time, the 50-DMA is set to fall below the 200-DMA which technicians consider a signal of more bearishness ahead.

Last summer, the 50-DMA was below the 200-DMA from July 1 to October 21. Bear in mind that the S&P 500 rose 15% over that time so this is hardly a perfect indicator.

The key number for today is 1158.84. If the S&P closes above that, the 50-DMA will still be above the 200-DMA.

Posted by on August 11th, 2011 at 1:27 pm


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