Another Death Cross Is Poised To Engulf The Market

Ominous-sounding death crosses have been emerging in the stock market like weeds, with the latest — and arguably, the last important such cross — about to take hold in the Dow.

The Dow Jones Industrial Average DJIA, +0.95% is on the verge of joining other major equity benchmarks in a so-called death cross, where the 50-day — a short-term trend tracker — crosses below the 200-day, used to determine a long-term trend in an asset. Chart watchers believe that such a cross marks the point where a shorter-term decline graduates to a longer-term downtrend.