The S&P 500 index has experienced a "death cross," the first occurrence in three years
ChainCatcher news, the S&P 500 index in the U.S. rose on Monday but showed a "death cross" signal, with the 50-day moving average crossing below the 200-day moving average, the first occurrence since March 2022. Technical analysts typically view a death cross as a signal that the downtrend will intensify.Although the index has usually experienced further declines after a death cross, this pain is often short-lived. Data shows that the overall average of the S&P 500 index tends to rise 2.5%, 4.2%, and 5.8% after 3 months, 6 months, and 12 months, respectively. Paul Ciana, Chief Technical Strategist at Bank of America Securities, stated that the impact of the S&P 500's death cross on future markets is inconclusive. A key factor is whether the 200-day moving average at the close has declined over the past five trading days. If so, it may indicate that the stock market has more room to decline in the near future. According to Ciana, this could be a clear signal that the index may retest last week's low of 2025.