Death Cross

A "Death Cross" is a technical analysis term used in financial markets to indicate a bearish signal. It occurs when a security's short-term moving average crosses below its long-term moving average, typically the 50-day moving average crossing below the 200-day moving average. This pattern suggests a potential downturn in the asset's price, signaling that the trend may be shifting from bullish (rising prices) to bearish (falling prices). Traders and investors often interpret the Death Cross as a sign to sell or to be cautious about holding a position, as it may imply that the asset could experience further declines. The term is contrasted with a "Golden Cross," which signals a potential upward trend when the short-term moving average crosses above the long-term moving average.