A couple of weeks ago, I said that "nothing good happens below the 200-Day MA" and that statement seems to hold up well, especially when it comes to the NASDAQ. However, from a technical standpoint, the NASDAQ may be sounding the alarm for a bigger move lower for the stock market as the 50-day MA is about to cross below the 200-day MA, and we all know what that means. That's right, a "Death Cross"!
If you're new to trading, technical trading, or just need a refresher. The death cross is a technical chart pattern indicating the potential for a major sell-off. The death cross appears on a chart when a stock's short-term moving average crosses below its long-term moving average. Typically, the most common moving averages used in this pattern are the 50-day and 200-day moving averages. While it doesn't always hold true, it could be an early indicator of further pain ahead.
The DOW shed 232.85 points, or -0.768%, at 34,079.18. The S&P 500 lost -0.72% to close at 4,348.87, and the NASDAQ retreated -1.23% to end the day at 13,548.07.
On a weekly level, the DOW posted a loss of -1.90; the S&P 500 traded lower, losing -1.58%, and the NASDAQ suffered a loss of -1.76 marking back-to-back weekly losses for all three indexes.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 4,593.31
- Dow (INDEX:DJI): 33,977.14
- NASDAQ (NASDAQ:COMP): 14,509.56
- U.S. Dollar (ICE:DX): 95.13
- Gold (NYMEX:GC.J22): 1,869.70
- Crude Oil (NYMEX:CL.H22): 89.03
- Bitcoin (BITCOIN:BITSTAMPUSD): 36,264.55