A “death cross” is an unusual price formation in the stock market that suggests a downturn may not be over yet. This phenomenon occurs when the 50-day moving average crosses below its longer-term 200-day moving average, which is typically seen as a sign of a weakening trend.
The death cross is often associated with volatile moments in financial markets and appears when economic distress signs are evident. Notably, this pattern has emerged during significant market downturns, including the dot-com bubble bursting in 2000 and the global financial crisis in 2007.
Traders view the current S&P 500 Index’s price drop since President Trump’s tariffs on imports as a potential trigger for another death cross, which could signal further losses for the index.
Source: https://www.bloomberg.com/explainers/death-cross-chart-pattern-stocks