About this Video

• Video Title: S&P 500 notches first death cross in 3 years
• Channel: Yahoo Finance
• Speakers: Jared Blickery
• Duration: 00:03:23

Introduction

This Yahoo Finance video explains the "death cross" phenomenon in the S&P 500, a technical indicator where a short-term moving average falls below a long-term one. The speaker, Jared Blickery, defines key terms, analyzes historical data on death crosses since 1961, and discusses its implications for market trends and trading strategies.

Key Takeaways

• A "death cross" occurs when a short-term moving average (e.g., 50-day) falls below a longer-term one (e.g., 200-day), often interpreted as a bearish signal.
• Statistical analysis of historical S&P 500 death crosses (since 1961) reveals mixed results; while short-term returns are often slightly negative, longer-term returns can be positive.
• The death cross alone is not a definitive trading signal; other confirming factors are needed.
• The market's reaction to a death cross varies depending on the speed and duration of the decline; rapid declines followed by quick recoveries contrast with slower, prolonged declines.
• Individual stocks may react differently to a death cross than indices.