By John Galt
June 26, 2011
One of the most powerful technical signals in stock market trading is the “Death Cross” and its opposite, the “Golden Cross.”
What Does Death Cross Mean?
A crossover resulting from a security’s long-term moving average breaking above its short-term moving average or support level.
Additionally:
Investopedia explains Death Cross
As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.
In other words, the U.S. economy and stock market might be taking the 1936-1937 turn down or worse, the proverbial 1930-31 downturn after a major bounce. Time will tell but based on the idiots in Washington, D.C. and the destruction we have witnessed in our markets, I fear for the worst. Enjoy the catchy, mind numbing, depressing tunes in this video, as no commentary was necessary. The charts speak for themselves.
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Great video JG.
It’s ugly out there…..