📉⚠️💥 Death Cross Looms in U.S. Stock Market, But History Shows Mixed Signals 🔹 Summary: The U.S. stock market faces a "death cross" signal, but technical analysis suggests it doesn’t always lead to significant further losses. The market may have already seen the worst of the selloff. While the S&P 500’s 50-day moving average threatens to fall below the 200-day moving average, past patterns show potential for recovery rather than prolonged downturns. 🔹 Key Points: • A death cross occurs when the 50-day moving average falls below the 200-day moving average, signaling potential for a longer-term downtrend. • Despite the ominous nature of the death cross, history shows that markets often recover, with the S&P 500 being higher 60% of the time 30 days after the signal. • Some of the worst selloffs followed death crosses, but many instances saw the worst of the decline before the signal appeared. • The market has already endured significant losses, with the S&P 500 nearly confirming a 20% correction, hinting that further downside may be limited. • Analysts suggest the current situation could lead to a V-shaped recovery similar to 2018 and 2020, rather than a drawn-out bear market. @CMEActiveTrader Tickers Of Interest: $ES $NQ $SPX Tickers Of Interest: $USD $VIX $XLF $SPY
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