The stock market has been on a roller-coaster ride over the last several days. And it could now be teetering on a steep drop for some stocks that are flashing a so-called “death cross.” This is a technical pattern in which a stock’s short-term moving average (typically the 50-day) slips below its long-term average (often the 200-day).
It usually means momentum is fading and that sellers are gaining control. A death cross can drag prices into bearish territory quickly, and while it is obviously not a crystal ball, this signal has a reputation for preceding significant movements to the downside.
