Why? Because all three indices now have a Death Cross? Because the Tony Robbins of Emini's said so? A little bit of both I guess. What is a Death Cross in technical analysis? Quite simply when the 50 period SMA drops below the 200 period SMA on the daily chart that's bad. Real bad. Can it recover? Yes. Does it often? It can take awhile. Because this is such a widely watched and respected technical indicator, many funds and individual investors will now go to cash until there is a Golden Cross. What is a Golden Cross? When the 50 period SMA rises above the 200 period SMA on a daily chart. That is good.
While this fact will weigh heavily on the markets overall, will it also create opportunity? YES! (oodles)
Heck, even I made money today.
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