"Dow's Impending 'Death Cross': Implications for Stock Market"

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Source: MarketWatch
"Dow's Impending 'Death Cross': Implications for Stock Market"
Photo: MarketWatch
TL;DR Summary

The Dow Jones Industrial Average is approaching a "death cross," a technical pattern where the 50-day moving average falls below the 200-day moving average, signaling a potential bearish trend. While some argue that death crosses can present buying opportunities during bull markets, others believe it is only significant if the 200-day moving average is declining when the crossover occurs. The Dow's recent death cross in March 2022 resulted in a 6.4% gain after one month and a 0.5% gain after one year. However, the historical median return after a death cross has been negative 1.1% after one month and 6.92% after one year.

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