A most ominous event came to pass this week. For the first time in four years, we witnessed a “death cross” in the broader U.S. stock market. The mere name alone may cause investors to think that they should be taking action. After all, if we are reading about a death cross in the business news headlines, it certainly can’t be a good thing, right? While a death cross is widely considered a bearish signal that stocks are about to break lower, this is not necessarily the case when examining these episodes from a historical perspective. This does not mean that it should be completely ignored, but at a minimum it must be taken in context.
Please click on the link to read more of my article on Seeking Alpha.