Death Cross Orgy (Sep. 2015)

US-American Indices / Death Cross Orgy (Sep. 2015)

Following the posting of the Death Cross in the Dow Jones Industrial Average (16th Aug. 2015) below charts of other famous US-American Indices as per 1st Sep. 2015 incl. the famous "bearish" Death Cross:

“Death cross” patterns continue to spread through the US-stock market like an epidemic, even infecting market segments believed to be more insulated from ("Non-US/")overseas turmoil.

The Russell 2000 index RUT of small-capitalization stocks became the latest victim among the major market indexes. The index’s 50-day moving average fell to 1,222.95 in midday trade Tuesday (1st Sep. 2015), crossing below the 200-day moving average (MA), which slipped to 1,224.11, according to FactSet.

The Russell 2000’s last death cross appeared on Sept. 22, 2014. => The index then fell another 7.1% in the three weeks after that before bottoming at a one-year low (this would now indicate a possible low around 20th Oct. 2015).

Many chart watchers believe a DEATH CROSS, when the 50-day MA crosses below the 200-day MA, indicates that a shorter-term decline has developed into a longer-term downtrend.

Many have questioned whether a well-telegraphed moving average crossover is really a bearish signal or not. But at the end of 2008, three months before the market bottomed, all 30 Dow stocks had produced death crosses.

Among other notable indexes in which the bearish pattern has appeared, the Dow Jones Total Stock Market Index DWCF, -2.90% also produced a death cross on Tuesday (2nd Sep. 2015), the Dow Jones Transportation Average DJT, -2.14% produced one on May 26, 2015 and the Dow Jones Utility Average DJU, -2.68% produced one on May 7, 2015.

As the saying goes: “History doesn’t repeat itself but it often rhymes,” as Mark Twain is often reputed to have said. 

original source/graphs: