Everyone's Watching For The Upcoming S&P Death Cross

What, are you still paying attention to the head & shoulders pattern in the stock market?

Time to move on. The new object of technical analysis transfixiation is the death cross, the grim name used to describe what happens when the 50-day moving averages crosses under the 200-day one, seen by many as a sign of more pain to come.

Here’s where are on the S&P 500 right now. The blue line is the 50-day, and the red line is the 200-day. Chart via StockCharts.com…

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Photo: StockCharts.com

So how robust is this indicator?

Here’s a few other recent death crosses.

China has worked out perfectly.

chart

Photo: StockCharts.com

In the commodities space, however, the recent death cross actually marked a bottom.

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Photo: StockCharts.com

While the reverse deathcross in the 10-year did seem to confirm the recent rally.

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Photo: StockCharts.com

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