S&P 500 Nears ‘Ultimate’ Death Cross!

17 July 2012 | 401k Topics,Annuity Think Tank,Bonds,College Savings,Estate Planning,Fixed Annuities,Income Annuities,Index Annuities,IRA's,Pensions,Retirement Planning,Social Security,The Economy,Variable Annuities | Tags: Apple Stock, are we headed for a bear market, are we headed for recession, are we in a recession, Best Stock Picks, Current Stock Price, Exponential Moving Average, High Dividend Stocks, how does s&p 500 effect the fed, how does the s&p 500 index signal market turns, is the us headed for a depression, is the us headed for recession, is the us in a recession, Moving Average Crossover, Moving Calculator, Moving Day, Moving Expenses, Moving Prices, Overseas Markets, s&p 500 death cross, s&p 500 ultimate death cross, Sandp 500 Index, the 50 month moving average approaches the 200 month average, the fed and the s&p 500, what is a death cross, what is the effect of a death cross, will qe help the market, will the 50 month moving average break the 200 month average

For the S&P 500 index, an ultimate death cross is when the 50-month moving average moves below the 200-month average, according to a research note by Societe Generale (SocGen). The term refers to the shape that is created on the chart when a market’s long-term average breaks its short-term moving level. When this happens it is usually an indicator of an upcoming bear market or a tip to sell off. Strategist Albert Edwards said the last time the index was this close to the death cross was “towards the end of the 1965-1982 secular bear market.” He added that Japan was hit by the death cross in 1988, “and 14 years later we are still in the firm embrace of the bear.”

As we approach this potential devastating cross, the data regarding monthly analyst optimism has slid significantly over the last few years which would indicate that the U.S. is already amidst a recession. Since we are said to be in state of slow recovery how is it that all of this data shows impending recession and a looming bear market. Combine this information with the upcoming fiscal cliff issue and we could have cataclysmic issues within the market. The next few 6 months could hold some big hurdles for growth in US and potentially push the economy into a further tailspin. Now is the time to make sure assets are protected.

To read the entire editorial by Katy Barnato with CNBC click S&P 500 nears ultimate death.

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