Death Cross

What is Death X?

A bearish signal occurring when the 50-day moving average crosses below the 200-day moving average.

Think of it like this

Like when a sprinter falls behind the marathon runner - short-term momentum losing to long-term trend.

Formula

SMA(50) crosses below SMA(200)
  • SMA(50): Short-term trend (50 trading days)
  • SMA(200): Long-term trend (200 trading days)

Why it matters

  • Major bearish technical signal
  • Often marks start of long-term downtrends
  • Widely watched, can trigger selling
  • Confirms bearish trend change

What's a good value?

Cross Confirmed
Bearish
New downtrend beginning
Approaching
Warning
Bearish signal may be imminent
SMA50 < SMA200
Downtrend
Currently in bearish configuration
SMA50 > SMA200
Uptrend
Currently in bullish configuration

Real-world example

The 2008 financial crisis was preceded by a death cross in major indices.

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