Dow Delays Death Cross With Big Monday Gain

Among the simplest and most popular technical stock indicators are moving average cross-overs. Perhaps the most popular of all crosses is the infamous “death cross,” which occurs when a stock’s 50-day simple moving average (SMA) crosses below its 200-day SMA.

What is the death cross?
As its name implies, the death cross is a traditionally bearish technical indicator and can signal the end of a long-term uptrend and the beginning of a long-term downtrend. The Dow Jones Industrial Average sits poised on the brink of its first death cross since 2011.

Disclosure: the author owns shares of Schlumberger.

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