Death cross forming on S&P 500

2018년 11월 25일

It can be seen that there is a death cross (SMA-50 crossing below SMA-200) forming on S&P 500 with daily candles. The market has been going down quite noticeably recently and it seems highly unlikely the death cross can be prevented. Drawing tangents for the SMAs indicates they will cross approximately mid December. However, the current double bottom could indicate the prices going up despite the strong downwards pressure and thus, postpone the death cross. If the price breaks below the double bottom I would see the death cross forming even before mid December but if the price goes up from now it will likely form mid to late december.

All in all the forming of the death cross seems quite likely in mid December. When this happens it signals we are likely to be entering a bear market and opening more opportunities for shorting. This might be a good moment to take a look at ones portfolio and consider how much risk you are willing to take and how long your investment time horizon is.