Death cross crystallizes in Nasdaq Composite on Friday for first time in 2 years, in a bearish sign for the stock market
The Nasdaq Composite index has produced a “death cross” chart pattern on Friday, a bearish chart pattern for an asset.
History suggests this occurrence could weigh on the broader stock market over the shorter term, however, it is unclear if the formation of the downbeat pattern, closely followed by market technicians, signals more pain ahead or simply affirms a downtrend that has taken shape in markets.
A death cross appears when the 50-day moving average crosses below the 200-day moving average, an event that many chart watchers view as marking the spot a shorter-term correction morphs into a longer-term downtrend.
Follow & share @TransAmericanFriendship
